Reference
A plain-English finance glossary for EOS companies.
Finance terms that come up when you run on EOS, defined simply, and connected to the EOS language you already use.
- Month-end close
- The process of finalizing a month's financial records so the numbers are complete, accurate, and locked. In EOS terms, a reliable close is what makes the Data component trustworthy, nothing on your Scorecard is dependable if the close underneath it isn't. More on month-end close →
- Controller
- The finance role that owns the close, reconciliations, and reporting, making the numbers trustworthy. For most growing EOS companies, the controller is the finance seat they need before a CFO. More on controller →
- Financial measurable
- A number on your Scorecard drawn from your financials. Good ones are leading, weekly-meaningful, and trusted. More on financial measurable →
- 13-week cash forecast
- A rolling, week-by-week projection of cash in, cash out, and ending balance over one quarter. The projected 13-week ending balance makes an excellent forward-looking Scorecard measurable. More on 13-week cash forecast →
- Accrual
- Recording revenue or an expense in the period it's earned or incurred, instead of when cash changes hands. Accruals are part of what separates a real close from "the bookkeeping is caught up."
- Reconciliation
- Matching your records to an outside source (like a bank statement) to confirm they agree. Skipped reconciliations are a common reason numbers can't be trusted.
- Gross margin
- Revenue minus the direct cost of delivering it, as a percentage. A company can grow revenue while margin quietly erodes, which is why margin trend is worth watching.
- Accounts receivable (AR)
- Money customers owe you but haven't paid yet. Growing AR can hide a cash problem behind healthy-looking revenue.
- Working capital
- The cash tied up in running the business day to day, receivables and inventory, less payables. Growth often consumes working capital, which is why a profitable company can still be short on cash.
- Fractional controller / CFO
- An experienced controller or CFO who works with your business part-time, giving you senior finance capability without a full-time hire. Common for growing EOS companies that have outgrown a bookkeeper but aren't ready for a full-time hire. More on fractional controller / CFO →
- Data component (EOS)
- One of the six key components of EOS, running the business on a handful of objective numbers instead of emotion. It only works if the finance function underneath produces accurate, timely numbers. More on data component →
- Scorecard (EOS)
- A weekly set of five to fifteen numbers that give an absolute pulse on the business. The financial rows on it are only as good as the close they come from. More on scorecard →
Where this leaves your own numbers
If the close lands late, the Scorecard is an estimate, or nobody owns the numbers between L10s, that is the gap the finance seat fills. Start with the readiness check, or talk it through with us.
Book a consult →Next in the library
These pages are meant to be read in order, and each one assumes the one before it.
- Finance for EOSwhy the finance seat is the one seat with no agreed standard
- What the finance seat isthe seat, and what it owns
- Who owns finance in an EOS companyvisionary, integrator, or somebody else
Start anywhere
- The EOS finance libraryeverything here, in order
- The field guidesthe long-form versions
- The toolsdiagnostics and checklists that run in the browser
Outside the EOS frame
- Controller servicessomeone who owns the close and the reporting
- Bookkeeper, controller or CFOthe decision guide, by symptom and revenue
If you want this done for you
What happens next
The close, the Scorecard and the cash forecast all need somebody accountable for them between L10s. That is what the finance seat is, and it is what we do.
- The call, twenty minutesYou describe the business and where the numbers are letting you down. We tell you honestly whether we can help, and what we would start with. No pitch deck.
- We look at the fileYou give us read access to the books as they are. We come back with what is wrong, what it will take to fix, and whether the answer is bookkeeping, controller work, or something else.
- A written scope and a priceWhat we do each month, what you get, the date it lands, and the fee. Agreed before anything starts, and it does not move without you agreeing it.
- Transition, then the first closeAccess, systems, and the opening balances. The first close lands on the date in the scope, and every one after it does too.
Averan is not a CPA firm and does not file taxes. Your CPA keeps that, and we keep the books they file from.