Financial Terms

Plain English. Real Numbers.

Financial jargon explained the way a small business owner needs to hear it. Terms marked Simple Numbers use Greg Crabtree’s framework — the methodology behind every Ketchup Clarity Report.

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About these definitions. Every term is explained from a small business owner’s perspective, not an accountant’s. Entries marked Simple Numbers use Greg Crabtree’s framework — the same one Ketchup uses to build your monthly Clarity Report. Learn how it works →

Accounts Payable→Accounts Receivable→Accrual Accounting→

Balance Sheet→Break-Even Point→Burn Rate→

Cash Flow→Cash Flow Statement→Catch-Up Bookkeeping→Ketchup Clarity Report→Capital Expenditures (CapEx)→Contribution Margin→Cost of Goods Sold (COGS)→

Days Sales Outstanding (DSO)→Depreciation & Amortization→Direct Labor→Draw (Owner’s Draw)→

EBITDA→Equity→Expenses→

Fiscal Year→Fixed Costs→Free Cash Flow→

GAAP→Goodwill→Gross Profit→Gross Profit Margin→

Simple Numbers Labor Efficiency Ratio (LER)→Liabilities→

Net Income→Net Profit Margin→

Operating Profit (EBIT)→Opportunity Cost→Operating Expenses→Simple Numbers Owner’s Pay→

P&L Statement→Simple Numbers Pre-Tax Profit→

Quick Ratio→

Reconciliation→Retained Earnings→Revenue→Return on Investment (ROI)→

SG&A→Simple Numbers Salary Cap→Simple Numbers Simple Numbers Framework→

Variable Costs→

Working Capital→