Glossary terms starting with V

Valuation Multiple

A valuation multiple is a ratio applied to a financial metric (typically revenue or EBITDA) to estimate business value.

Value-based pricing sets a fee based on the value a client receives, not on the hours spent or the cost to deliver.

Variable costs are expenses that change in proportion to business activity or revenue.

Vendor approval is the process of vetting and authorizing suppliers before doing business with them.

Vendor management is the process of selecting, onboarding, approving, paying, and reviewing the suppliers a business relies on.

Vendor setup is the process of adding new vendors to your accounting system and establishing proper records before making payments.

A vendor statement is a summary from a supplier showing your account activity and balance owed.

A voided check is a check that has been cancelled before it can be cashed or deposited.