Accountants, like many professionals, have their own word speak.  While most have heard of the Income Statement, Balance Sheet and Cash Flow Statement, knowing about them and understanding them are different stories.  Then there’s Pro Forma, Net present value, working capital, cash equivalents, current assets and liabilities, operating statements, funds flow analysis, capitalization, gross margin, and sweat starts to form of the brow.  Things get more deice when words such as solvency, current ratio, acid test ratio, inventory turned, burden, accrual, annuity, discounted, yield, sunk cost, Leverage, EBIT, EBITDA, GAAP, FASB and so on are bantered about.  

Terminology that is foreign to us can be disconcerting and intimidating – until we develop the understanding.  There are a variety of ways to gain understanding.  We can muddle through on our own, take a class or call on someone with greater insight.  

We at B2B CFO welcome the opportunity to help increase the financial intelligence of business owners and executives.  We are accustom to simplifying the complex without confusing accountant speak and remain aware that the terminology of our profession can be intimidating.  But don’t take my word for it.  If you are confused by some of the jargon tossed around by your accountant or bookkeeping staff, give us a call and we will take the mystery out of the terminology