However, there are a few critical financial terms that most leaders need to at least be able to define, better yet, have a basic working knowledge.
That way, the next time you boldly proclaim that your project will have an “awesome ROI”, and some smart alec says “oh really, can you show us your analysis”, you won’t run from the room in tears.
Why not give your finance/accounting person a call, and offer to buy them lunch in exchange for a free tutorial?
Take a pad or tablet, and ask them about a few of the following terms. Go ahead, you'll have a hoot!
1. Accruals. An amount incurred as an expense in a given accounting period—but not paid by the end of that period. An example would be the electricity bill for a given quarter.
9. Gross profit. The sum left over after all direct product expenses or costs of goods sold have been subtracted from revenues.