Top 10 important words and phrases for Finance Manager

Top 10 important words and phrases for Finance Manager 1. Cash Flow Cash flow refers to the movement of money in and out of a business. Understanding cash flow is crucial for managing day-to-day operations and ensuring financial stability. 2. ROI (Return on Investment) ROI is a key metric used to evaluate the profitability of an investment. It measures the return generated relative to the cost of the investment. 3. Liquidity Liquidity refers to the ease with which an asset can be converted into cash. It's essential for businesses to maintain sufficient liquidity to meet their short-term obligations. 4. Budgeting Budgeting involves creating a detailed financial plan that outlines expected income and expenses. It helps in setting financial goals and tracking performance. 5. Risk Management Risk management involves identifying, assessing, and mitigating potential risks that could impact the financial health of a business. It's a critical aspect of financial decision-making. 6. Depreciation Depreciation is the gradual decrease in the value of an asset over time. It's important to account for depreciation when valuing assets and calculating profits. 7. Equity Equity represents the ownership interest in a company. It's calculated as the difference between a company's assets and liabilities. 8. Dividends Dividends are a portion of a company's profits distributed to its shareholders. They are often paid out as cash or additional shares. 9. Capital Expenditure Capital expenditure refers to the funds used for acquiring or improving long-term assets, such as property, plant, and equipment. 10. Financial Statement A financial statement is a formal record of a company's financial activities, including the balance sheet, income statement, and cash flow statement.