The Ultimate Qashiopedia
Vendor Management
The process of overseeing and managing suppliers and service providers to ensure compliance with contracts and optimise performance.
Virtual Cards
A digital-only corporate card that operates like a physical card with all the features necessary for online use. They are ideal for managing one-time or recurring e-payments. Virtual cards also provide instant creation and cancellation for improved flexibility.
Virtual cards
Virtual cards function the same as physical cards, containing identical information and operating just like a traditional card. However, they are stored digitally, typically in a smartphone app or digital wallet, rather than in a physical wallet. Benefits of virtual cards include instant issuance and the ability to lock them immediately through the issuer's app.
Wire transfers
A wire transfer is a method of electronically transferring funds from one party to another, with the bank acting as an intermediary. The sender provides payment information to their bank, which then transmits the payment to the recipient's bank. Wire transfers are generally faster but may incur higher fees compared to standard bank transfers.
Working capital formula
Working capital measures a business's short-term liquidity and is used in various financial reports and analyses. It represents the amount of current assets remaining after a company pays off its short-term liabilities. The formula for working capital is: WC = Current Assets - Current Liabilities. Positive working capital generally indicates a financially healthy business capable of financing its growth and meeting debt obligations, while negative working capital may complicate debt management.
X-efficiency
X-efficiency is a concept that relates to a company’s ability to maximise efficiency in a competitive environment. It incentivises the company to maintain low average production costs. Conversely, X-inefficiency occurs in markets with little to no competition, where companies lack motivation to minimise costs, resulting in higher actual costs than necessary.
Xenocurrency
Xenocurrency, commonly referred to as foreign currency, denotes any currency traded in markets outside its national borders. For instance, trading AED in the U.S. market qualifies as xenocurrency.
Year fraction
Year fraction refers to a portion of an interest term expressed as a decimal. It is typically used in interest calculations and is determined by the formula: Year Fraction = Part of term in days / Total interest term in days.
Year-to-date (YTD)
Year-to-date, or YTD, indicates the period from the start of the year (whether fiscal or calendar) to the current date (or another specified date). In finance, this term is often used to calculate investment returns, assess a company's current financial health, or prepare financial reports.
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