Key Financial Concepts and Professional Roles

Core Financial Metrics

• Revenue: Money received from customers.
• Gross Profit: Profit after direct costs.
• Net Profit After Tax: Profit after all costs and taxes.
• Retained Profit: Money reinvested in the company.

Operational Costs and Liabilities

• Cost of Goods Sold: Direct costs, e.g., materials and labor.
• Operating Cost: Other costs, e.g., administration, buildings, utilities.
• Tax: Money paid to the government.
• Depreciation: Loss in value of equipment.
• Dividends: Money distributed to shareholders.
• Bid: An offer of money for something at an auction.
• Asset: Anything owned by a person or company that has monetary value.
• Stock: Goods available for sale, distribution, or use.

Debt and Liquidity Terms

• Overdraft: An amount of money by which a bank account is overdrawn.
• Liquidity Problem: Not enough cash to pay for costs.
• To Owe Money: To be in debt.
• To Go Bankrupt: To be unable to pay your debts.
• To Be in the Red: To have debts that exceed assets.
• Bad Debts: Old invoices that a customer has not paid.
• Outstanding Money: An amount of money which has not been paid yet.
• Overdue Payment: A payment that should have been paid before now.
• To Settle: To pay all the money you owe somebody.
• Takeover Bid: An offer to buy the shares in a company and take control of it.

Documentation and Planning

• Invoice: List of goods sold with the prices charged.
• Receipt: A document you receive when you buy something.
• Statement: A bank document showing the money in your account.
• Budget: Estimate of probable future income and expenditure.

Financial Professionals

• Accountant: Person who keeps and examines business accounts.
• Bank Clerk: Person employed in a bank.
• Creditor: Person to whom one owes money.
• Auditor: Person who examines company accounts to ensure they are in order.
• Manager: Person who controls a business or a department.
• Finance Director: Person responsible for the finance of the company.
• Financial Advisor or Analyst: Someone who advises on financial affairs.
• Business Agent: Person who manages the business affairs of another.
• Tax Inspector: Person who examines income returns and checks tax payments.
• Tax Consultant: Person who gives expert advice on tax.
• Insurance Broker: Person who finds the best insurance policy.
• Shareholder: Person who owns shares.
• Stockbroker: Person who buys and sells shares and bonds for others.
• Real-Estate Broker: Person who buys and sells properties.