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Finance and Accounting Glossary
Common Terms Used When Outsourcing Finance and Accounting Services
- Account code
- Accounting & Finance Outsourcing
- Accounts Receivable
- Asset Allocation
- B2B Payment
- Balance Sheet Management
- Bangko Sentral ng Pilipinas
- Base Salary per Year
- Bookkeeping
- Employee turnover
- Finance & Accounting
- Financial Forecasting
- Fintech
- Frictionless Payment
- Green bond
- Offshore Accounting
- Paraplanning
- Payroll Outsourcing
- Payroll Tax
- Account code
- An Account Code is a unique identifier assigned to individual clients or projects within an organization. It is often used for tracking expenses, resource allocation, and project management in outsourcing scenarios.
- Accounting & Finance Outsourcing
- Accounting & Finance Outsourcing is the strategic delegation of financial and accounting tasks to external service providers. These providers, often experts in financial management, offer services such as bookkeeping, financial analysis, payroll processing, and tax compliance. Outsourcing accounting and finance functions helps organizations reduce operational costs, access specialized skills, and ensure financial accuracy and compliance. This approach allows businesses to focus on core financial strategies while leaving routine financial tasks in capable hands.
- Accounts Receivable
- Accounts Receivable is the essential financial process of tracking and managing revenues owed to a business. It encompasses invoicing, payment collection, and ensuring that outstanding payments are received in a timely manner. Effective accounts receivable management is crucial for maintaining healthy cash flow and financial stability.
- Asset Allocation
- Asset Allocation is a financial strategy that involves the strategic distribution of investment funds across various asset classes. The goal is to achieve an optimal balance between risk and return. By diversifying investments into assets like stocks, bonds, and real estate, investors can mitigate risk and potentially enhance long-term portfolio performance.
- B2B Payment
- B2B Payment refers to the financial transactions and methods used by businesses to pay other businesses for goods or services rendered. B2B payments often involve invoicing, electronic funds transfers, and other business-specific payment processes.
- Balance Sheet Management
- Balance Sheet Management involves the preparation and analysis of a financial statement that presents a company’s assets, liabilities, and equity at a specific point in time. This statement provides a snapshot of a company’s financial health and is used for making informed decisions about resource allocation and financial strategy.
- Bangko Sentral ng Pilipinas
- Bangko Sentral ng Pilipinas, often abbreviated as BSP, is the central bank of the Philippines. It is responsible for issuing currency, regulating banks and financial institutions, and managing monetary policy in the country.
- Base Salary per Year
- Base Salary per Year represents the fixed annual compensation that an employee receives from their employer before any additional bonuses, commissions, or benefits are factored in.
- Bookkeeping
- Bookkeeping is the systematic recording of financial transactions on a regular basis. It involves tracking income, expenses, and other financial activities to create accurate financial statements. These statements, including the balance sheet and income statement, provide a comprehensive overview of a company’s financial health. Proper bookkeeping is essential for informed decision-making, financial planning, and compliance with regulatory requirements.
- Employee turnover
- Finance & Accounting encompasses the management of financial resources and the recording, analysis, and reporting of financial transactions within an organization. It includes tasks such as budgeting, financial planning, and financial statement preparation.
- Finance & Accounting
- A Financial Services Company provides a range of financial products and services to individuals, businesses, and organizations. These services can include banking, investment, insurance, and wealth management.
- Financial Forecasting
- Financial Forecasting is the practice of predicting future financial outcomes based on historical data and current trends. It is crucial for budgeting, financial planning, and investment decisions. Accurate financial forecasting helps organizations allocate resources effectively and make informed financial strategies.
- Fintech
- Fintech, short for Financial Technology, refers to technology-driven innovation in the financial sector. It encompasses a wide range of services and products, including digital payments, peer-to-peer lending, blockchain, and mobile banking. Fintech aims to enhance financial services, making them more accessible, efficient, and user-friendly.
- Frictionless Payment
- Frictionless Payment is a concept in the financial sector that focuses on creating seamless and easy payment experiences for customers. It often involves technologies like digital wallets, contactless payments, and mobile apps, reducing the effort required for transactions and enhancing convenience.
- Green bond
- A Green bond is a type of financial instrument designed to fund environmentally friendly projects or initiatives. Investors in green bonds provide capital for projects with positive environmental impacts.
- Offshore Accounting
- Offshore Accounting involves managing accounting functions from a location outside the country of the business’s primary operations. It can be cost-effective and efficient, allowing organizations to access specialized accounting expertise while maintaining financial accuracy and compliance with international regulations.
- Paraplanning
- Paraplanning provides assistance and support to financial planners, including research and administrative tasks. It allows financial advisors to focus on client interactions and strategic planning, while paraplanners handle essential behind-the-scenes activities.
- Payroll Outsourcing
- Payroll Outsourcing involves delegating payroll administration to third-party experts. This streamlines the complex payroll process, ensuring accurate and compliant payment of employees. Payroll outsourcing providers handle tasks such as payroll calculations, tax withholdings, and compliance reporting.
- Payroll Tax
- Payroll Tax refers to deductions from payroll for taxation purposes. These deductions include income tax, social security contributions, and other withholdings required by government authorities. Accurate payroll tax management is critical for legal compliance and financial reporting.