Business finance terms, explained simply.
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A rainmaker is a professional who excels at bringing in new clients and revenue.
Read moreA rate increase raises the prices a firm charges for its services.
Read moreRate realization compares actual revenue per hour to standard billing rates.
Read moreReal-time financial reference books are continuously updated and reconciled, providing current visibility into cash position, revenue, expenses, and profitability, rather than waiting for the month-end close.
Read moreRealization rate measures the percentage of potential billings actually collected and is calculated as (Revenue Collected / Standard Billable Hours × Standard Rate) × 100.
Read moreReasonable compensation is pay for services that matches what a comparable business would pay for similar work.
Read moreThe IRS says an S corporation must pay reasonable compensation to a shareholder-employee for the services that person provides to the corporation before non-wage distributions may be made.
Read moreReconciliation is the process of comparing two sets of records to verify they match and identifying any discrepancies.
Read moreRecord retention refers to maintaining business records in accessible form for specified periods.
Read moreThe recurring revenue ratio shows the share of a firm's revenue that comes from ongoing retainers and subscriptions instead of one-time projects.
Read moreA recurring transaction is an entry that repeats on a scheduled basis, such as monthly rent, subscription fees, or loan payments.
Read moreA refund check returns money to a customer for overpayment, returned merchandise, cancelled services, or credit balances.
Read moreA registered agent is a person or company designated by a business to receive legal documents and official state notices on its behalf.
Read moreRegular rate of pay is the hourly rate used to calculate overtime, including not just base hourly wages but also non-discretionary bonuses, commissions, and certain other compensation.
Read moreRemote deposit allows you to deposit checks without visiting a bank branch by scanning check images using a desktop scanner connected to your bank's system.
Read moreA replenishing retainer requires the client to add funds when the retainer balance drops below a specified amount.
Read moreA request for proposal is a formal document issued by an organization soliciting proposals from consulting firms to address a specific need.
Read moreResource allocation is the process of assigning people, time, and budget to projects and activities.
Read moreRetained earnings are the cumulative profits a business has kept, instead of paying out as distributions or dividends, since it began.
Read moreA retainer agreement establishes an ongoing client relationship in which clients pay a fixed monthly fee for access to services, typically with predefined hours or deliverables included.
Read moreRetainer billing is a payment arrangement where clients pay upfront for a block of services or guaranteed availability.
Read moreReturn on assets (ROA) measures how much profit a business earns for each dollar of assets it uses.
Read moreReturn on equity (ROE) measures how much profit a business earns relative to the owners' investment.
Read moreA returned payment is a payment that fails to complete, returning to the sender.
Read moreRevenue backlog represents the total value of contracted work that has not yet been delivered or recognised as revenue, including signed contracts, active retainers, and committed project phases.
Read moreRevenue concentration measures how much of a firm's revenue comes from a small number of clients.
Read moreThe revenue cycle encompasses all processes from service delivery through cash collection, including time capture, billing, invoicing, collection, and cash application.
Read moreRevenue deferral is the practice of deferring revenue recognition when payment is received before services are delivered, recording the amount as a liability until it is earned.
Read moreA revenue forecast projects the revenue a firm expects in future periods.
Read moreRevenue forecasting projects future revenue based on contracted backlog, pipeline probability weighting, historical patterns, and business assumptions.
Read moreRevenue growth rate measures the percentage increase in revenue between two periods, most commonly year-over-year (YoY).
Read moreRevenue leakage represents money lost between work performed and cash collected, encompassing unbilled time, billing errors, excessive discounts, scope creep absorption, and collection failures.
Read moreRevenue per consultant measures the average annual revenue generated by each billable employee, calculated by dividing total revenue by the number of consultants.
Read moreRevenue per employee measures how much revenue the business generates per full-time equivalent employee, calculated as Total Revenue divided by the number of Employees.
Read moreRevenue per professional is total firm revenue divided by the number of billable professionals.
Read moreRevenue recognition is the accounting principle that determines when revenue is officially recorded in your financial statements.
Read moreRevenue recognition timing is the question of when a firm records revenue.
Read moreA revenue reserve is cash set aside from operating profits for future business needs, providing a financial cushion for slow periods, unexpected expenses, or growth investments.
Read moreRevenue run rate projects current revenue levels to an annual figure, providing a snapshot of where the business would end up if current performance continued unchanged.
Read moreRevenue variance is the difference between actual and budgeted revenue.
Read moreA rolling forecast is a forecast that is updated regularly, usually monthly or quarterly, and always looks a set number of periods ahead.
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