The FinFloh Blog

Manage Account Receivables Definition : Manage Accounts Receivable refers to the process of overseeing and handling the money that customers owe to a business for products or services delivered on credit. This critical aspect of business financial management involves tracking, collecting, and optimizing outstanding invoices to ensure timely payments, reduce bad debt, and maintain healthy […]

Late Payments Definition : Late payments refer to financial obligations that are not settled by their specified due date. These can include payments on invoices, loans, credit cards, utility bills, or other contractual agreements. Late payments disrupt cash flow, impact financial planning, and may result in penalties or damage to credit scores for individuals and […]

Key Accounts Definition : Key accounts refer to a company’s most valuable customers who contribute significantly to its revenue, profitability, and long-term business success. These are clients with strategic importance due to their consistent purchasing behavior, substantial order volume, or potential for future growth. Key accounts are not just regular customers; they are treated as […]

Accounts Receivable KPIs Definition Accounts Receivable KPIs (Key Performance Indicators) are measurable metrics that help organizations evaluate the efficiency and effectiveness of their accounts receivable (AR) processes. These KPIs provide critical insights into the financial health of a business by tracking how quickly and efficiently it collects payments from customers. By monitoring these indicators, companies […]

Journal Entry Definition : A journal entry is a fundamental concept in accounting that records all financial transactions of a business in a systematic manner. These entries serve as the first step in the double-entry bookkeeping process, where every transaction is documented in at least two accounts: one account is debited, and the other is […]

Income Statement Definition : An Income Statement, also known as a Profit and Loss Statement (P&L), is one of the core financial documents used by businesses to measure their financial performance over a specific period. It outlines a company’s revenues, costs, and expenses, ultimately determining whether the business is making a profit or incurring a […]

High-Interest Debt Definition : High-interest debt refers to any form of borrowing where the interest rate charged is significantly higher than the average market rate. This type of debt often results in borrowers paying a substantial amount over the original loan or credit amount, making it financially burdensome. Common examples of high-interest debt include credit […]

GAAP (Generally Accepted Accounting Principles) Definition : GAAP (Generally Accepted Accounting Principles) refers to a set of accounting standards, guidelines, and practices used by companies to prepare and present their financial statements. These principles ensure that financial reporting is transparent, consistent, and comparable across different organizations. For businesses, adhering to GAAP is critical to maintain […]

Factoring in Finance Definition : Factoring in finance is a financial practice where a business sells its receivables (invoices) to a third party, known as a factor, at a discounted rate. This arrangement allows the business to receive immediate cash flow instead of waiting for customers to pay their invoices. Factoring in finance can be […]

E-Lockbox Definition : An e-lockbox is a digital payment processing system that facilitates the seamless collection, management, and reconciliation of payments for businesses. It is a modern alternative to traditional lockbox services offered by banks, designed to streamline the accounts receivable (AR) process. By automating the collection and recording of payments, an e-lockbox significantly reduces […]

Days Deduction Outstanding (DDO) Definition Days Deduction Outstanding (DDO) is a crucial metric used in accounts receivable management to measure the average number of days it takes for a company to resolve deductions from outstanding invoices. In simple terms, DDO helps businesses track the time it takes for deductions, such as discounts, rebates, or disputes, […]

Capital Expenditures Definition Capital Expenditures (CapEx) refer to the funds a business spends on acquiring, maintaining, or upgrading its long-term assets. These assets are critical for the company’s ongoing operations and growth, often including physical items like machinery, equipment, buildings, and technology infrastructure. Unlike everyday operational expenses, which cover the costs of running daily business […]