Workforce & Finance Glossary for Employers
It's easy to get lost in the business lingo of HR, payroll, finance, and IT. Let our Workforce & Finance Glossary light the way! Browse by category, alphabetically, or use the search bar.
We regularly update our glossary to keep up with the fast-changing world of work. Bookmark it for quick reference — whether you’re a workforce specialist or building your own business.
a
Accumulated depreciation
A running total of a fixed asset’s lost value over the course of its useful life span.
Amortization
The process of spreading an intangible asset’s cost across its useful lifespan.
Arrears
An amount of money that’s intentionally or accidentally paid after it’s owed.
Automated Clearing House (ACH)
A nationwide electronic network for transferring funds between individuals and organizations.
b
c
Contribution Margin Ratio
A metric showing how much sales revenue is available to cover fixed costs and contribute to profits.
Cost Per Hire
The average amount a company spends to attract and hire a new employee.
Cost-of-living adjustment (COLA)
A financial mechanism designed to help income keep pace with rising costs of goods and services.
d
Deferred revenue
Payments an organization receives before it provides the corresponding goods or services.
Discretionary business expense
An optional cost that a business can reduce or eliminate without affecting core operations.
Disregarded entity
A tax status where a legally separate business and its owner are treated as the same taxpayer.
f
g
j
m
o
p
Payment Facilitator (PayFac)
A service provider that streamlines financial onboarding and digital transactions.
Per diem
A daily allowance paid to employees to cover the cost of travel-related expenses for work.
Provisional Credit
A temporary deposit for maintaining access to funds while a disputed charge is investigated.
r
s
SWIFT Payment
International money transfers coordinated via secure SWIFT messages between banks.
Sinking fund
A savings strategy that sets money aside over time to cover a known future expense or debt.
Statement of Operations
A financial document assessing a company’s financial performance over a specific period.