Financial Glossary
Finance Terms, Plain English
Every financial term a small business owner needs to know, defined clearly, with real examples from businesses like yours.
Burn Rate
Burn rate is how fast your business spends cash. Learn what burn rate means, how to calculate it, and how to use it to manage your runway.
Read definition →Cash Runway
Cash runway is how long your business can survive at its current burn rate. Learn how to calculate runway and why it matters for small business owners.
Read definition →Working Capital
Working capital is the difference between current assets and current liabilities. Learn what working capital means, how to calculate it, and why it matters for day-to-day operations.
Read definition →Gross Margin
Gross margin is the percentage of revenue left after subtracting the direct cost of goods sold. Learn how to calculate gross margin and what a healthy margin looks like for your industry.
Read definition →Net Profit Margin
Net profit margin is the percentage of revenue that becomes actual profit after all expenses. Learn how to calculate net margin and what it tells you about your business health.
Read definition →EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Learn what EBITDA means for small businesses and when it matters.
Read definition →Cost of Goods Sold (COGS)
COGS is the direct cost of producing what you sell. Learn how to calculate cost of goods sold, what belongs in COGS, and how it affects your gross margin.
Read definition →Accounts Receivable
Accounts receivable is money owed to your business by customers. Learn what AR means, how aging works, and how slow collections hurt cash flow.
Read definition →Accounts Payable
Accounts payable is money your business owes to suppliers and vendors. Learn how AP affects cash flow, working capital, and vendor relationships.
Read definition →Profit and Loss Statement (P&L)
A profit and loss statement shows your revenue, expenses, and net profit over a period of time. Learn how to read a P&L and what it tells you about your business.
Read definition →Balance Sheet
A balance sheet shows what your business owns, what it owes, and what is left over for owners. Learn how to read a balance sheet and what it reveals about financial health.
Read definition →Cash Flow Statement
A cash flow statement tracks actual cash moving in and out of your business. Learn how it differs from a P&L and why it is critical for small business survival.
Read definition →AI CFO
An AI CFO uses artificial intelligence to deliver financial intelligence, insights, and answers for small businesses. Learn what an AI CFO does and how it compares to a human CFO.
Read definition →Fractional CFO
A fractional CFO is a part-time Chief Financial Officer hired on a contract basis. Learn what a fractional CFO does, what they cost, and how AI is changing the equation.
Read definition →KPI Dashboard
A KPI dashboard displays your most important business metrics in real time. Learn what KPIs matter most for small businesses and what a good financial dashboard shows.
Read definition →Anomaly Detection
Financial anomaly detection automatically flags unusual patterns in your business data. Learn how AI-powered anomaly detection helps small businesses catch problems early.
Read definition →Financial Intelligence
Financial intelligence is the ability to understand, interpret, and act on your business financial data. Learn how AI-powered financial intelligence works for small businesses.
Read definition →Dental Supply Cost
Dental supply cost is one of the most closely watched metrics in practice management. Learn what a healthy supply cost percentage looks like and how to track it automatically.
Read definition →Production Per Hour
Production per hour measures how much revenue a dental practice generates per clinical hour. Learn how to calculate it and use it to improve practice profitability.
Read definition →Supply Spend
Supply spend tracking helps businesses monitor vendor costs in real time. Learn how automated supply spend tracking works and why it matters for dental practices and other businesses.
Read definition →Stop reading about finance. Start understanding yours.
FREM answers financial questions about your actual business data, not generic examples. Connect your accounts and ask anything.
Start 7-Day Free Trial