Glossary

The total amount customers owe the business for invoices issued but not yet paid.

The movement of money into and out of the business over a given period — distinct from profit.

A reversal of a card payment initiated by the cardholder's bank, usually after a dispute.

Tax charged on the profits of a company (as opposed to a sole trader or partnership).

The percentage fee a payment processor charges on each transaction, often combined with a fixed per-transaction fee.

Revenue minus the direct cost of producing or delivering the goods or services sold, expressed as a percentage of revenue.

The date by which the customer is contractually expected to pay the invoice in full.

A charge added to an invoice when payment is not received by the due date, intended to compensate for the delay.

Payment terms requiring full payment within 30 calendar days of the invoice date.

What is left of revenue after every cost of running the business has been deducted — the bottom line.

The contractual conditions specifying when and how an invoice should be paid.

The total fee a payment processor charges per transaction — typically a percentage of the amount plus a small fixed component.

The window during which a proposal's pricing and terms remain offered to the buyer.

A recurring fee paid in advance for guaranteed access to a supplier's time or services over a period.

A consumption tax charged at the point of final sale to the consumer, common in the United States.

A clear description of exactly what is included — and excluded — in a project or contract.

A tax on the value added at each stage of production, charged to the end customer and remitted to the tax authority by the seller.