Glossary

A credit memo, also known as a credit memorandum or a credit note, is a document issued by a seller to a buyer. It acts like a voucher that reduces the amount the buyer owes.

Current accounts payable (CAP) is a metric that works alongside current accounts receivable by providing information on your company’s debts. Accounts payable are current liabilities – your business will eventually need to pay its debts, which will result in cash outflow.

Current account(s) receivable (CAR) is a KPI used to track the amount of money B2B customers owe your business.

Current ratio is a metric that makes it easier for businesses to understand their ability to deal with short-term liabilities.

Customer Acquisition Cost (CAC) is the total amount of money a company spends to gain a new customer.

Customer lifetime value (CLV or CLTV) is a metric that estimates the total revenue a business can reasonably expect from a single customer account throughout the business relationship.

CRM stands for Customer Relationship Management. A CRM software helps businesses track and analyze customer data and interactions.

Cycle time refers to the average time it takes to complete a specific task, production process, or service delivery from start to finish.

Accounts receivable aging is the process of calculating and comparing the debts your company is owed based on how long it takes creditors to pay them. This number is typically expressed in days or weeks.

Data mining is the process of uncovering patterns and extracting valuable information from large sets of data. It's like sifting through a gold mine of information to find hidden gems of insights.