Glossary
Financial language, without the fog.
Original, plain-language definitions for the operating metrics and accounting concepts used across OwnCents. Exact treatment can depend on policy, source coverage, and reporting context.
These definitions are educational, not accounting, tax, legal, or investment advice.
- Runway
- An estimate of how long available cash can support the business if a modeled pattern of net cash use continues. Runway changes when cash, collections, spending, or assumptions change.
- Burn
- The cash a business uses over a period. Gross burn usually refers to cash operating outflows, while net burn reflects outflows after operating inflows; the chosen definition should always be stated.
- MRR
- Monthly recurring revenue: recurring subscription revenue normalized to one month. It excludes one-time revenue and depends on clear rules for new business, expansion, contraction, and churn.
- AP
- Accounts payable: amounts the business owes suppliers for goods or services already received but not yet settled.
- AR
- Accounts receivable: amounts customers owe the business for goods or services already billed or recognized under the applicable process.
- AP aging
- A schedule that groups open supplier balances by how long they have been outstanding or overdue, helping teams review payment timing and the completeness of payable records.
- Reconciliation
- The process of comparing two sources of financial evidence, such as a bank source balance and the books, then explaining every difference through matches, timing items, or controlled adjustments.
- Trial balance
- A list of ledger account balances for a period or date used to verify that total debits and total credits agree before financial statements are relied upon.
- Journal
- A balanced accounting instruction that identifies the accounts, debit and credit amounts, date, and explanation for a proposed or completed posting.
- Ledger
- The chronological accounting record of posted journal activity by account. An immutable ledger preserves posted evidence by using new entries or reversals rather than rewriting history.
- Financial close
- The controlled period-end process of completing reconciliations, resolving exceptions, reviewing statements, and restricting further posting when the evidence is ready.
- Intercompany
- Financial activity between Legal Entities in the same group. Each entity records its own side, and the corresponding due-to and due-from positions should be matched without hiding one-sided differences.
- Consolidation
- The process of combining financial statements for a defined group, translating currencies where required, and applying traceable eliminations so internal activity is not counted as external group performance.
- Distributions
- Approved allocations of eligible value to owners or stakeholders under defined rights and authority. A distribution decision, accounting recognition, and external cash settlement are separate events.
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