Business finance terms, explained simply.
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Malpractice tail coverage, also called an extended reporting period, provides coverage for claims made after a claims-made professional liability policy ends.
Read moreA management reporting package is the set of financial and operating reports a firm reviews regularly to run the business, usually monthly.
Read moreA management representation letter is a formal written statement from management to the CPA confirming the accuracy and completeness of information provided for an audit or review.
Read moreThe marginal tax rate is the rate applied to the next dollar of taxable income.
Read moreMarket-based sourcing assigns service revenue to the state where the client receives the benefit of the service, not where the work was performed.
Read moreMarkup is a percentage added to the cost to determine the selling price.
Read moreA master service agreement is a contract that establishes the overarching terms and conditions governing all future work between a consulting firm and a client.
Read moreMatter closing is the administrative process of concluding a client matter in your firm's systems after the substantive work is complete.
Read moreMatter opening is the process a law firm follows to set up a new client matter.
Read moreMatter profitability measures whether a specific client engagement made or lost money.
Read moreBusiness meals and entertainment are expense categories that the tax rules treat differently from ordinary business expenses.
Read moreThe Medicare surtax, also called the additional Medicare tax, is a 0.
Read moreMedicare tax is a federal payroll tax that funds the Medicare health insurance program.
Read moreA member distribution is a payment from an LLC to its members representing their share of profits or a return of capital.
Read moreA merchant fee is the charge you pay to accept credit and debit card payments from customers.
Read moreMerchant services are the tools and accounts that let a business accept card payments, including a payment processor, an acquiring bank, a gateway for online sales, and terminals for in-person sales.
Read moreMileage reimbursement is a payment to an employee for business use of a personal vehicle, usually calculated as miles driven multiplied by a per-mile rate.
Read moreMilestone billing splits a fixed project fee into installments tied to stages of the work instead of hours or calendar dates.
Read moreA milestone payment is a portion of the total project fee released upon completion of a defined deliverable or project phase.
Read moreMinimum wage is the lowest hourly rate an employer can legally pay employees.
Read moreMobile deposit lets you deposit checks using your smartphone camera through your bank's mobile app.
Read moreA month-end checklist is a standard list of tasks a team completes to close the books for a month, such as reconciling accounts, recording accruals, reviewing reports, and locking the period.
Read moreMonth-end close is the process of reviewing, reconciling, and finalizing all financial transactions for a completed month to produce accurate financial statements.
Read moreA monthly close is the process of finalizing your financial records at the end of each month.
Read moreA monthly financial package is a standardized set of financial reports delivered after each month-end close, typically including P&L statement, balance sheet, cash flow statement, AR/AP aging, and management commentary explaining key variances and trends.
Read moreA monthly financial review is a scheduled meeting where business owners examine key financial statements, metrics, and indicators with their accountant or bookkeeper.
Read moreMonthly recurring revenue represents the predictable revenue a consulting firm expects to receive each month from ongoing client relationships, primarily retainers and subscription arrangements.
Read moreMonthly revenue accrual is the process of recognizing revenue earned during the month, regardless of billing or collection timing, ensuring accurate period financial results.
Read moreMulti-state compliance covers the registrations, filings, and notices a business must handle once it operates in more than one state.
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