The Ultimate Qashiopedia
Budget variance
The difference between the budgeted revenues or expenses and the actual figures is referred to as budget variance. There are two types of budget variance: favourable, which indicates higher revenue or lower expenses than budgeted, and adverse, which indicates lower revenue or higher expenses than budgeted. Budget variance can result from either systematic or unsystematic factors but is often due to a rushed or inadequately thought-out budget.
Budgeting
The process of creating a financial plan that outlines expected income and expenses over a specific period, aiding in effective financial management and forecasting.
Burn rate
The burn rate is a formula that measures how long a company’s cash will last until exhaustion if it is operating at a loss. It is used for both performance evaluation and company valuation and is calculated using the following formulas: Gross Burn Rate = Cash / Monthly Operating Expenses Net Burn Rate = Cash / Monthly Operating Losses
Business credit cards
A business credit card, as the name suggests, is a credit card issued to a company for business use. There are typically fewer barriers to apply for business credit cards compared to business loans, as the application process is usually streamlined and provides instant decisions. These cards may alleviate expense management issues and often come with perks and benefits. However, as lenders take on increased risk, the borrower will generally pay a higher interest rate.
Buy now, pay later (BNPL)
"Buy Now, Pay Later" (BNPL) is a quick form of short-term instalment loan. It typically involves point-of-sale instalments that allow the customer to pay part of the product's price at the time of purchase and the remaining balance over a specified period, sometimes interest-free. Payments are usually made in 30 days, often in 3-4 instalments.
Capital Assets
In personal terms, almost any asset can be considered a capital asset, including stocks, vehicles, property, and collectibles. In a business context, capital assets are those not intended for sale in the normal course of operations and have a useful life of more than one year.
Capital gains / capital losses
A capital gain occurs when a capital asset increases in value and is realised when the asset is sold for more than its purchase price. Conversely, a capital loss occurs when a capital asset decreases in value and is realised when the asset is sold for less than its purchase price.
Capitalisation table
A capitalisation table, often shortened to cap table, is an in-depth analysis of a company's shareholders' equity. It is primarily used in startups and companies in their initial stages.
Card Controls
Rules and restrictions that administrators can apply to Qashio corporate cards, including spending limits merchant restrictions, and geo-location rules.
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