Glossary terms starting with G

GAAP

GAAP stands for Generally Accepted Accounting Principles, the standard framework for financial reporting in the United States.

General ledger

The general ledger is the master record of all financial transactions in your business, organized by account according to your chart of accounts.

Goodwill

Goodwill is an intangible asset representing the value of a business above its identifiable net assets, arising when the acquisition price exceeds the fair value of tangible assets and identifiable intangibles.

Gross margin

Gross margin is gross profit expressed as a percentage of revenue, showing how much of each revenue dollar remains after paying direct service delivery costs.

Gross Margin by Service Line

Gross margin by service line calculates profitability for each distinct service offering by comparing revenue to direct costs (primarily consultant labour) for that service type.

Gross Margin Variance

Gross margin variance measures the difference between actual and expected gross margin, and the analysis identifies whether the variance stems from revenue, cost, or mix changes.

Gross Pay

Gross pay is an employee's total earnings before any deductions.

Gross profit

Gross profit is revenue minus direct service costs, representing the profit generated before operating expenses.

Gross Profit Bridge

A gross profit bridge analyzes and quantifies the factors that caused gross profit to change from one period to another, typically showing volume, price, cost, and mix effects.

Gross Profit Per Hour

Gross profit per hour measures the profit contribution from each hour of billable work, calculated as the billing rate minus the direct cost per hour.

Gross Receipts

Gross receipts represent the total amount received from all sources before any deductions for expenses, returns, or allowances, serving as a baseline revenue measure for tax and regulatory purposes.

Gross Revenue

Gross revenue is the total amount billed to clients before any deductions for discounts, write-offs, returns, or allowances.

Gross Wages

Gross wages represent total employee compensation before any deductions for taxes, benefits, or other withholdings.

Guaranteed Payment

A guaranteed payment is pay to a partner for services or for the use of capital that is set without regard to the partnership's profit.