Accounting technology / Glossary
Accounting technology glossary
Plain definitions of the terms finance teams and accounting firms meet when they buy, run or replace their systems.
Most looked up
AuditAudit softwareAudit software is the set of tools an audit firm uses to plan, perform, document and review an audit: engagement and workpaper management, client requests and evidence collection, data extraction…Definition →Practice managementClient moneyClient money is money an accounting firm, law firm, property agent or investment business holds that belongs to a client rather than to the firm: tax refunds passing through, funds held for payments, deposits.Definition →Financial close and reconciliationMonth-end closeMonth-end close is the process of finalising a company's accounts for the period: reconciling balances, posting accruals and adjustments, reviewing results and producing the financial statements.Definition →ERP and general ledgerAccounting data migrationAccounting data migration is moving a company's financial records from one system to another: the chart of accounts, opening balances, transaction history, customers and suppliers, open invoices and bills…Definition →
01
Financial close and reconciliation
Account reconciliationAccount reconciliation is the check that a balance in the general ledger agrees with an independent record…Definition →Adjusting entriesAdjusting entries are journal entries made at the end of an accounting period so that income and expenses fall…Definition →ASC 606ASC 606, Revenue from Contracts with Customers, is the US GAAP standard that sets when and how much revenue a company…Definition →ASC 842ASC 842, Leases, is the US GAAP lease standard.Definition →Balance sheet reconciliationBalance sheet reconciliation is the period-end process of proving every balance sheet account in the general ledger…Definition →Bank connectivityBank connectivity is how a company's treasury, ERP and payment systems exchange data with its banks: receiving…Definition →Bank feedsBank feeds are automatic connections that bring transactions from a business's bank accounts and cards into its…Definition →Bank reconciliationA bank reconciliation is the check that the cash balance in a company's general ledger agrees with its bank statement.Definition →Bank statement formats (MT940, camt.053, BAI2)Bank statement formats are the standard electronic file layouts banks use to send account balances and transactions…Definition →Capitalised contract costs (ASC 340-40)Capitalised contract costs are costs of obtaining or fulfilling a customer contract that are recorded as an asset…Definition →Cash poolingCash pooling is a treasury technique that combines the bank balances of a group's companies so that surplus cash…Definition →Close checklistA close checklist is the list of every task needed to close the books for a month, quarter or year, with an owner…Definition →ConsolidationFinancial consolidation is the process of combining the accounts of several legal entities into one set of group…Definition →Continuous closeContinuous close is running the steps of the month-end close throughout the month instead of after it: reconciling…Definition →Contract assets and liabilitiesContract assets and contract liabilities are balance sheet items under ASC 606 and IFRS 15.Definition →Days to closeDays to close is the number of working days between the end of an accounting period and the point at which the books…Definition →Deferred revenueDeferred revenue is money a business has billed or received for goods or services it has not yet delivered.Definition →Financial reportingFinancial reporting is the preparation of a company's financial statements and related disclosures for people outside…Definition →Flux analysisFlux analysis is a month-end close review that compares each account balance with the prior period or the same period…Definition →FRS 102FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, is the main accounting…Definition →FX revaluationFX revaluation is the period-end step that restates balances held in foreign currencies, such as bank accounts…Definition →FX risk managementFX risk management is how a company identifies and controls the effect of exchange rate movements on its cash flows…Definition →IFRSIFRS, or International Financial Reporting Standards, are the accounting standards issued by the International…Definition →IFRS 15IFRS 15, Revenue from Contracts with Customers, is the IFRS standard on recognising revenue.Definition →IFRS 16IFRS 16, Leases, is the IFRS standard that sets how leases are recorded.Definition →Incremental borrowing rateThe incremental borrowing rate (IBR) is the interest rate a lessee would pay to borrow, over a similar term and…Definition →Intercompany accountingIntercompany accounting is recording, matching, settling and eliminating transactions between legal entities…Definition →Intercompany eliminationsIntercompany eliminations are the consolidation entries that remove balances and transactions between companies…Definition →iXBRL and XBRLXBRL (eXtensible Business Reporting Language) is a standard for tagging each figure and disclosure in financial…Definition →Lease accountingLease accounting is how a business records leases of property, vehicles and equipment in its accounts.Definition →Month-end closeMonth-end close is the process of finalising a company's accounts for the period: reconciling balances, posting…Definition →Performance obligationsPerformance obligations are the distinct promises in a contract to transfer goods or services to a customer.Definition →Revenue recognitionRevenue recognition is the set of accounting rules that decide when a company records revenue and how much.Definition →Revenue waterfallA revenue waterfall is a schedule that shows, contract by contract, how much revenue has been recognised to date…Definition →Right-of-use assetA right-of-use (ROU) asset is the lessee's right to use a leased asset, such as an office, vehicle or equipment…Definition →SEC reportingSEC reporting is the set of financial and business disclosures that companies with securities registered…Definition →Standalone selling price (SSP)Standalone selling price (SSP) is the price at which a company would sell a promised good or service separately…Definition →Transaction matchingTransaction matching is pairing records from two sources that describe the same event, such as a bank line and…Definition →Treasury managementTreasury management is running a company's cash: seeing balances across banks, entities and currencies, forecasting…Definition →US GAAPUS GAAP, or US generally accepted accounting principles, is the set of accounting standards used by US companies…Definition →Year-end closeYear-end close is the process of finalising a company's accounts for the financial year.Definition →
02
AP, AR and payments
Accounts payable automationAccounts payable automation is software that handles supplier invoices from receipt to payment: it captures invoice…Definition →Accounts receivable automationAccounts receivable automation is software that issues invoices, sends reminders, collects payment, applies cash…Definition →ACH paymentsACH payments are electronic bank-to-bank transfers in the United States sent through the Automated Clearing House…Definition →Aged debt reportAn aged debt report lists the money customers owe a business, grouped by how long each invoice has been outstanding…Definition →Bacs and Faster PaymentsBacs and Faster Payments are the two main schemes for paying between UK bank accounts in sterling.Definition →Bad debt provisionA bad debt provision is an estimate of the amounts customers owe that will not be collected, deducted from…Definition →Cash applicationCash application is the accounts receivable step of matching each incoming customer payment to the invoices it pays…Definition →Collections managementCollections management is the accounts receivable work of getting overdue invoices paid: tracking what each customer…Definition →Contract-to-cashContract-to-cash is the process that turns a signed customer contract into collected cash and recognised revenue…Definition →Cost per invoiceCost per invoice is the total cost of processing one supplier invoice, from receipt through approval to payment.Definition →Credit controlCredit control is the work of deciding which customers can buy on credit, how much and on what terms, and then making…Definition →Days payable outstanding (DPO)Days payable outstanding, or DPO, is the average number of days a company takes to pay its suppliers.Definition →Days sales outstanding (DSO)Days sales outstanding, or DSO, is the average number of days a company takes to collect payment after a sale on…Definition →Dispute management (accounts receivable)Dispute management in accounts receivable is the process of recording, investigating and resolving customers'…Definition →DunningDunning is the process of sending customers a planned sequence of reminders to pay overdue invoices, starting…Definition →Duplicate payment detectionDuplicate payment detection is the set of checks that stop a company paying the same supplier invoice twice.Definition →Dynamic discountingDynamic discounting is an arrangement in which a buyer offers to pay a supplier's approved invoice before its due…Definition →Embedded paymentsEmbedded payments are payment features built into software a business already uses, so invoices, proposals or bills…Definition →Global payoutsGlobal payouts are payments a business sends to large numbers of payees in many countries, such as suppliers…Definition →Invoice approval workflowAn invoice approval workflow is the set of rules that sends each supplier invoice to the right people to approve…Definition →ISO 20022ISO 20022 is an international standard for financial messages, such as payment instructions, bank statements…Definition →LockboxA lockbox is a bank service, used mainly in the US, that collects customer payments by cheque on a company's behalf.Definition →Open bankingOpen banking is the regulated sharing of bank account data and payment initiation through secure APIs…Definition →Order-to-cashOrder-to-cash, or O2C, is the end-to-end process from receiving a customer's order to having the payment in the bank…Definition →Payment fraud preventionPayment fraud prevention is the set of controls that stop a business from paying fraudsters, through fake invoices…Definition →Payment runA payment run is a scheduled batch in which a company pays its approved supplier invoices together, usually weekly…Definition →Payment termsPayment terms are the conditions agreed between a seller and a buyer for paying an invoice: how many days the buyer…Definition →Purchase ledgerThe purchase ledger is the sub-ledger that records every supplier's account: the invoices received, credit notes…Definition →Quote-to-cashQuote-to-cash (QTC) is the end-to-end process from preparing a sales quote to collecting the cash and recognising…Definition →Sales ledgerThe sales ledger is the sub-ledger that records every customer's account: the invoices issued to them, credit notes…Definition →SEPA paymentsSEPA payments are euro bank transfers and direct debits made under the Single Euro Payments Area schemes, which let…Definition →Subscription billingSubscription billing is invoicing customers automatically on a recurring schedule, such as monthly or annually, from…Definition →Supplier onboardingSupplier onboarding is the process of setting up a new supplier before the first order or payment: collecting its…Definition →Supply chain financeSupply chain finance, also called reverse factoring, is a programme in which a bank or other funder pays a buyer's…Definition →Three-way matchA three-way match is an accounts payable control that checks a supplier invoice against two other documents before it…Definition →Touchless invoice processingTouchless invoice processing is the handling of a supplier invoice from receipt to approval for payment without…Definition →Usage-based billingUsage-based billing charges customers according to how much of a product or service they use in a period, such as API…Definition →
03
Tax and compliance
1099 reporting1099 reporting is the US requirement for businesses to report certain payments, such as fees to independent…Definition →AI in tax complianceAI in tax compliance is the use of machine learning and language models for tax work that used to be manual…Definition →BAS (business activity statement)A business activity statement, or BAS, is the return Australian businesses lodge with the Australian Taxation Office…Definition →Belgium e-invoicing mandateThe Belgium e-invoicing mandate requires VAT-registered businesses established in Belgium to send and receive…Definition →Continuous transaction controls (CTC)Continuous transaction controls (CTC) are tax rules under which businesses send invoice or transaction data…Definition →Corporation taxCorporation tax is the tax a company pays on its taxable profits, worked out from its accounting profit…Definition →E-invoicingE-invoicing is issuing and receiving invoices as structured data that the buyer's and seller's systems can read…Definition →Exemption certificatesSales tax exemption certificates are documents a US buyer gives a seller to show that a purchase is exempt from sales…Definition →France e-invoicing reformThe France e-invoicing reform requires businesses established in France to exchange domestic business-to-business…Definition →Germany e-invoicing mandateThe Germany e-invoicing mandate requires invoices between domestic businesses to be structured e-invoices that follow…Definition →GST (goods and services tax)GST, or goods and services tax, is a consumption tax on most sales of goods and services, collected at each stage…Definition →India GST e-invoicingGST e-invoicing in India requires businesses with aggregate annual turnover above ₹5 crore to register each…Definition →Indirect taxIndirect tax is tax on the sale or consumption of goods and services rather than on income or profit.Definition →IRS e-fileIRS e-file is the US Internal Revenue Service's system for filing tax returns electronically through authorised…Definition →Italy SDI (Sistema di Interscambio)The Sistema di Interscambio (SDI) is the Italian tax authority's platform through which businesses send electronic…Definition →Japan Qualified Invoice SystemJapan's Qualified Invoice System is the consumption tax rule, in force since 1 October 2023, under which a buyer can…Definition →Making Tax DigitalMaking Tax Digital (MTD) is the UK government's programme requiring businesses, sole traders and landlords to keep…Definition →Malaysia MyInvois e-invoicingMyInvois is the e-invoicing system of Malaysia's Inland Revenue Board (LHDN).Definition →Marketplace facilitator rulesMarketplace facilitator rules make an online marketplace, rather than the third-party seller, responsible…Definition →PeppolPeppol is an international network and set of standards for sending e-invoices and other procurement documents…Definition →Poland KSeFKSeF, the Krajowy System e-Faktur, is Poland's national e-invoicing system.Definition →SAF-T (Standard Audit File for Tax)SAF-T, the Standard Audit File for Tax, is a standard XML format for exporting accounting data from a business's…Definition →Sales tax nexusSales tax nexus is the connection between a seller and a US state that obliges the seller to register for, collect…Definition →Singapore InvoiceNowInvoiceNow is Singapore's national e-invoicing network, built on Peppol.Definition →Spain Verifactu and SIIVerifactu is the informal name for Spain's rules on invoicing software, which require each invoice to create…Definition →Tax determination engineA tax determination engine is software that works out the indirect tax on each transaction: whether it is taxable, at…Definition →Tax ID validationTax ID validation is checking that a customer's or supplier's tax identification number, such as a VAT number or US…Definition →Tax technologyTax technology is software that determines, calculates, files and documents tax: sales tax and VAT on transactions…Definition →VAT on digital servicesVAT on digital services is the VAT or GST charged on software, apps, streaming, e-books, online courses and other…Definition →VAT OSS and IOSSOSS and IOSS are the European Union's One-Stop Shop schemes for VAT on cross-border sales to consumers.Definition →VAT returnA VAT return is the periodic report a VAT-registered business files with its tax authority, showing the VAT it…Definition →VAT reverse chargeThe VAT reverse charge is a rule that moves responsibility for accounting for VAT from the seller to the business…Definition →ViDA (VAT in the Digital Age)ViDA, short for VAT in the Digital Age, is the European Union's package of VAT reforms adopted in March 2025.Definition →
04
ERP and general ledger
Accounting data migrationAccounting data migration is moving a company's financial records from one system to another: the chart of accounts…Definition →Accounting dimensionsAccounting dimensions are tags, such as department, location, entity, project, product or customer, attached to each…Definition →Accounting tech stackAn accounting tech stack is the set of software a finance team or accounting firm uses, and how those systems connect.Definition →AccrualsAccruals are amounts recorded in the accounts for expenses a company has incurred, or income it has earned, before an…Definition →AI-native ERPAn AI-native ERP is a general ledger and finance system designed from the start around automation: transactions are…Definition →APIAn API, or application programming interface, is a defined way for one piece of software to request data from another…Definition →Autonomous general ledgerAn autonomous general ledger is accounting software in which the ledger largely maintains itself: it categorises…Definition →Balance sheetA balance sheet is the financial statement that shows, at a single date, what a company owns, what it owes and what…Definition →Cash flow statementA cash flow statement is the financial statement that shows how cash moved in and out of a business over a period.Definition →Chart of accountsA chart of accounts is the structured list of every account a company uses in its general ledger, each with a code…Definition →DepreciationDepreciation is the way accounting spreads the cost of a long-lived asset, such as equipment, vehicles or buildings…Definition →E-commerce accountingE-commerce accounting is bookkeeping and accounting for businesses that sell online, through their own store…Definition →ERP (enterprise resource planning)An ERP, or enterprise resource planning system, is software that runs a company's financial accounting together…Definition →ERP implementationAn ERP implementation is the project of putting a new ERP into use: agreeing how processes will work, configuring…Definition →ERP integrationERP integration is connecting other business and finance systems to the ERP so that data moves between them…Definition →Fixed asset accountingFixed asset accounting is the recording of a business's long-lived assets, such as buildings, machinery, vehicles…Definition →Fund accountingFund accounting is a method of accounting used by non-profit organisations and public bodies that records money…Definition →General ledgerThe general ledger, or GL, is the complete record of a company's financial transactions, organised into the accounts…Definition →Inventory accountingInventory accounting is the valuation of goods a business holds for sale, and the recording of their cost as they are…Definition →Journal entryA journal entry is the record of a financial transaction in the general ledger, made up of at least one debit and one…Definition →Model Context Protocol (MCP)The Model Context Protocol (MCP) is an open standard for connecting AI assistants to other software and data.Definition →Multi-currency accountingMulti-currency accounting is recording transactions in more than one currency while keeping the books in a single…Definition →Multi-entity accountingMulti-entity accounting is keeping the books for several legal entities, often in different countries and currencies…Definition →On-premise vs cloud accountingOn-premise accounting software is installed and run on a company's own servers under a perpetual licence; cloud…Definition →PrepaymentsPrepayments are payments made in advance for goods or services a company will receive in a later period, such as…Definition →Profit and loss statementA profit and loss statement, or P&L, is the financial statement that shows a company's revenue, costs and…Definition →Project accountingProject accounting tracks the revenue, costs and profit of each project or contract separately, alongside…Definition →Real-time accountingReal-time accounting is keeping the books up to date continuously, as transactions happen, rather than catching up…Definition →Shadow ledgerA shadow ledger is a parallel record of accounting data kept alongside the official general ledger, usually…Definition →Sub-ledgerA sub-ledger is a detailed ledger for one area of the accounts, such as customer invoices, supplier bills, fixed…Definition →Trial balanceA trial balance is a list of every account in the general ledger with its closing debit or credit balance at…Definition →Two-tier ERPTwo-tier ERP is a setup in which a group keeps its main ERP at headquarters, or tier one, while subsidiaries…Definition →
05
Payroll
Benefits administrationBenefits administration is the work of running employee benefits such as health insurance, retirement or pension…Definition →Construction Industry Scheme (CIS)The Construction Industry Scheme (CIS) is the UK tax scheme under which contractors in construction deduct money from…Definition →Contractor managementContractor management is the process of engaging and paying independent contractors and freelancers: checking their…Definition →CPF contributionsCPF contributions are mandatory payments into Singapore's Central Provident Fund, which funds retirement, housing…Definition →DSN (déclaration sociale nominative)The DSN, or déclaration sociale nominative, is the monthly electronic declaration that employers in France file from…Definition →Embedded payrollEmbedded payroll is payroll offered inside another software product, such as a vertical business platform, accounting…Definition →Employer of record (EOR)An employer of record (EOR) is a company that legally employs workers in a country on behalf of another business…Definition →German payroll reporting (ELStAM)Payroll reporting in Germany runs through electronic links with the tax and social insurance authorities.Definition →Global payrollGlobal payroll is the process of paying employees in more than one country, each under its own rules for income tax…Definition →Gross-to-netGross-to-net is the payroll calculation that takes an employee's gross pay for a period, including salary, overtime…Definition →HRISAn HRIS, or human resources information system, is the software that holds a company's employee records: personal…Definition →KiwiSaver and payday filingKiwiSaver is New Zealand's voluntary workplace savings scheme for retirement.Definition →PAYE and RTIPAYE, Pay As You Earn, is the UK system under which employers deduct income tax and National Insurance from…Definition →Payroll bureauA payroll bureau is a firm that runs payroll for other businesses.Definition →Payroll integrationPayroll integration is the connection between a company's HR and payroll systems and its accounting software.Definition →Payroll journalA payroll journal is the general ledger entry that records a pay run: gross wages and employer costs as expenses…Definition →Payroll reconciliationPayroll reconciliation is the check that what a payroll run calculated agrees with what was approved, paid…Definition →Payroll softwarePayroll software calculates pay, tax and deductions for employees, files the returns and payments due to tax…Definition →Payroll taxPayroll tax is the tax collected through payroll: amounts withheld from employees' pay, such as income tax and…Definition →Payroll year-end (W-2, P60)Payroll year-end is the annual close of the payroll year: reconciling the year's pay, tax and deductions, sending…Definition →Pension auto-enrolmentPension auto-enrolment is the UK law that requires employers to put eligible workers into a workplace pension scheme…Definition →PEO (professional employer organization)A PEO, or professional employer organization, is a US company that co-employs another business's staff.Definition →Single Touch PayrollSingle Touch Payroll, or STP, is the Australian system under which employers report each employee's pay, pay as you…Definition →SuperannuationSuperannuation, or super, is Australia's compulsory workplace retirement savings system.Definition →Time and attendanceTime and attendance is the recording of when employees work: clocking in and out, shifts, breaks, overtime…Definition →Worker classificationWorker classification is deciding whether a person working for a business is an employee or an independent contractor…Definition →
06
Audit
AI in auditingAI in auditing is the use of machine learning and language models in audit work: scoring every transaction…Definition →Anomaly detectionAnomaly detection is using software to flag transactions, balances or behaviour that differ from what is expected, so…Definition →Audit data analyticsAudit data analytics is the use of software to analyse a client's complete ledgers and other data during an audit…Definition →Audit risk assessmentAudit risk assessment is the stage of an audit in which the auditor identifies and assesses the risks that…Definition →Audit samplingAudit sampling is applying audit procedures to fewer than all the items in a population, chosen so that every item…Definition →Audit softwareAudit software is the set of tools an audit firm uses to plan, perform, document and review an audit: engagement…Definition →Audit trailAn audit trail is the record that lets anyone follow a transaction from its source document through every step…Definition →Continuous auditingContinuous auditing is the use of automated tests that run on transactions, balances and controls frequently, often…Definition →Full-population testingFull-population testing is analysing every transaction in an account, ledger or process, rather than a sample, using…Definition →Internal auditInternal audit is an independent function within an organisation that reviews how well its risks are managed, its…Definition →Internal controls (ICFR)Internal controls are the policies, procedures and checks a company uses to make its financial reporting reliable…Definition →Journal entry testingJournal entry testing is an audit procedure that examines journal entries and other adjustments made in preparing…Definition →MaterialityMateriality is the threshold above which a misstatement or omission in financial statements matters.Definition →PBC listA PBC list, short for prepared by client, is the list of schedules, reconciliations, reports and documents an auditor…Definition →Segregation of dutiesSegregation of duties is the internal control principle that no single person should be able to carry out…Definition →SOC 1 reportA SOC 1 report is an independent auditor's report on the controls at a service organisation, such as a payroll…Definition →SOC 2 reportA SOC 2 report is an independent examination, performed by a CPA firm under AICPA standards, of a service…Definition →SOX complianceSOX compliance means meeting the requirements of the Sarbanes-Oxley Act of 2002, the US law on financial reporting by…Definition →Technical accountingTechnical accounting is the work of deciding how a transaction should be recorded under the accounting standards…Definition →Vouching and tracingVouching and tracing are two directions of audit testing.Definition →Working papersWorking papers are the records an auditor or accountant keeps to show the work done on an engagement: the planning…Definition →
07
FP&A and forecasting
13-week cash flow forecastA 13-week cash flow forecast is a week-by-week projection of cash receipts and payments for the next quarter.Definition →ARR (annual recurring revenue)ARR, or annual recurring revenue, is the annualised value of the recurring subscription contracts a company has…Definition →BudgetingBudgeting is setting a financial plan for a future period, usually the next financial year, showing expected revenue…Definition →Burn rate and cash runwayBurn rate is the speed at which a company uses up its cash, usually measured per month.Definition →Business intelligence (BI) for financeBusiness intelligence (BI) is software and practice for turning data from business systems into reports, dashboards…Definition →Cash conversion cycleThe cash conversion cycle, or CCC, is the number of days between a company paying for its inputs and collecting cash…Definition →Cash flow forecastingCash flow forecasting is projecting a company's future cash receipts and payments to see how much cash it will have…Definition →Cash visibilityCash visibility is the ability to see a company's cash balances and transactions across all its banks, accounts…Definition →Connected planningConnected planning is an approach in which finance, sales, workforce, supply chain and other plans are built in one…Definition →Driver-based planningDriver-based planning is building budgets and forecasts from the operational factors that cause financial results…Definition →FP&AFP&A, financial planning and analysis, is the finance team's work of building budgets, forecasts and scenarios…Definition →Headcount planningHeadcount planning is forecasting how many people a company will employ, in which roles, teams and locations…Definition →Management accountsManagement accounts are the financial reports a company prepares for its own directors and managers, usually monthly…Definition →Office of the CFOThe office of the CFO is the chief financial officer together with the functions that report to them: usually…Definition →Rolling forecastA rolling forecast is a financial forecast that always covers the same length of time ahead, such as the next 12…Definition →SaaS metricsSaaS metrics are the measures used to manage and value software-as-a-service and other subscription businesses.Definition →Scenario planningScenario planning is modelling several possible versions of the future, typically a base case, an upside and…Definition →Three-statement modelA three-statement model is a financial model that links a company's profit and loss statement, balance sheet and cash…Definition →Variance analysis (budget vs actual)Variance analysis is comparing a company's actual results with its budget, forecast or prior period and explaining…Definition →Working capitalWorking capital is a company's current assets minus its current liabilities.Definition →Zero-based budgetingZero-based budgeting, or ZBB, is a budgeting method in which every cost has to be justified from zero for each new…Definition →
08
Bookkeeping
Accounting automationAccounting automation is the use of software to carry out routine accounting steps without manual work: capturing…Definition →Accrual accountingAccrual accounting records revenue when it is earned and costs when they are incurred, regardless of when cash moves.Definition →AI accounting agentsAI accounting agents are software that carries out accounting tasks end to end rather than assisting a person doing…Definition →AI copilotAn AI copilot is an assistant built into a work tool that helps the person using it: it answers questions about…Definition →AI hallucinationAn AI hallucination is output from a language model that is presented confidently but is false or unsupported: an…Definition →AI-native accounting firmAn AI-native accounting firm is an accounting, tax or audit practice built to deliver its services mostly through AI…Definition →AI-native softwareAI-native software is software designed around AI from the start, so that models do the core work and people review…Definition →Cash basis accountingCash basis accounting records income only when money is received and expenses only when they are paid, ignoring when…Definition →Cloud accountingCloud accounting is keeping a company's books in a ledger run as a web service and paid by subscription, rather than…Definition →Double-entry bookkeepingDouble-entry bookkeeping is the method of recording every transaction in at least two accounts, with equal debits…Definition →Embedded accountingEmbedded accounting is bookkeeping built into another product that a business already uses, such as a business bank…Definition →Forward deployed accountantA forward deployed accountant is a qualified accountant employed by a software vendor who works directly…Definition →Fractional CFOA fractional CFO is an experienced finance leader who works for a company part-time or for set days each month, often…Definition →Generative AI in accountingGenerative AI in accounting is the use of large language models, the technology behind ChatGPT, Claude and Copilot…Definition →Human in the loopHuman in the loop is a design for AI systems in which a person reviews, corrects or approves the system's output…Definition →Machine learning in accountingMachine learning in accounting is the use of models that learn patterns from past financial data, rather than…Definition →Outsourced accountingOutsourced accounting is a company or accounting firm using an outside provider to do accounting work: bookkeeping…Definition →Retrieval-augmented generation (RAG)Retrieval-augmented generation (RAG) is a way of building AI tools in which the system first searches a defined set…Definition →Transaction categorisationTransaction categorisation is assigning each bank, card or payment transaction to the right account in the chart…Definition →
09
Expense and spend management
Corporate cardsCorporate cards are payment cards a company issues to employees for business spending, with the company, not…Definition →Expense managementExpense management is the process, and the software, for handling employees' business spending: capturing receipts…Definition →Expense policyAn expense policy is the company's written rules on business spending by employees: what may be bought, the limits…Definition →Expense reimbursementExpense reimbursement is paying employees back for business costs they paid with their own money, such as travel…Definition →Intake-to-procureIntake-to-procure is the part of procurement that starts when an employee asks to buy something and ends when an…Definition →Procure-to-payProcure-to-pay, or P2P, is the end-to-end process a business follows to buy goods and services and pay for them…Definition →ProcurementProcurement is the set of activities an organisation uses to acquire the goods and services it needs: deciding what…Definition →Purchase orderA purchase order, or PO, is a document a buyer sends to a supplier to order goods or services, listing the items…Definition →Receipt captureReceipt capture is photographing, forwarding or uploading receipts so software can read them and attach them…Definition →SaaS spend managementSaaS spend management is tracking and controlling what a company spends on software subscriptions: finding every tool…Definition →Spend controlsSpend controls are the limits, rules and approvals a company applies before money is spent rather than after: card…Definition →Spend managementSpend management is controlling company money before it goes out: corporate cards with limits set in advance, expense…Definition →Tail spendTail spend is the part of an organisation's spending made up of many small, low-value purchases from a large number…Definition →Travel and expense (T&E)Travel and expense (T&E) management is how a company controls spending on business travel and employee expenses…Definition →Virtual cardsVirtual cards are payment card numbers issued digitally, without a plastic card, from a company's card or spend…Definition →
10
Practice management
Capacity planning for accounting firmsCapacity planning for an accounting firm is matching the hours staff have available to the work that is due, week by…Definition →Client accounting servicesClient accounting services, or CAS, is an accounting firm running a client's finance function as an ongoing service…Definition →Client moneyClient money is money an accounting firm, law firm, property agent or investment business holds that belongs…Definition →Client onboarding for accounting firmsClient onboarding is the process an accounting firm follows to take on a new client: checking identity and money…Definition →Client portalA client portal is a secure website or app through which an accounting firm and its clients exchange documents…Definition →Collaborative accountingCollaborative accounting is a way of working in which an accounting firm and its client use the same live books…Definition →Companies House filingCompanies House filing is the set of documents a UK company must send to the registrar of companies: annual accounts…Definition →CPA (certified public accountant)A CPA, or certified public accountant, is an accountant licensed by a US state board of accountancy.Definition →Document management for accountantsDocument management for accountants is the software and process an accounting firm uses to collect, store, organise…Definition →Engagement letterAn engagement letter is the written agreement between an accounting firm and its client that sets out which services…Definition →Lock-upLock-up is the length of time an accounting or professional services firm's cash is tied up between doing work…Definition →Utilisation and realisationUtilisation and realisation are two measures of an accounting firm's productivity.Definition →Value pricingValue pricing is setting a professional fee by the value the work has to the client, agreed in advance, rather than…Definition →Work in progress (WIP)Work in progress (WIP) in an accounting or professional services firm is the value of work done for clients that has…Definition →
11
Document capture and data extraction
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12
Choosing the software
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