Glossary

3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 

AI billing is the process of metering, pricing and charging for AI-powered features within SaaS products.

AI revenue recognition refers to two things: first, it refers to using artificial intelligence for revenue recognition automation in accounting systems. Instead of relying on manual inputs and rules-based software, companies can use AI tools to interpret contracts, apply accounting standards like ASC 606 or IFRS 15 and update revenue schedules automatically.

Accounting Standards Codification (ASC) 606 is a standard framework for revenue recognition developed by the Financial Accounting Standards Board (FASB) for companies operating within the United States.

Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.

Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.

Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.

Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.

Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.