10 Confusing Finance Terms Simplified

10 confusing general finance terms explained simply by Brian Feroldi. Finance is all about

making money to drive growth. Accounting is all about tracking and reporting financial

transactions for compliance and accuracy. So finance is forward looking, accounting is backward

looking. Cash accounting is recording revenue and expenses when cash changes hands.

Accrual accounting is recording those same concepts when they're incurred. Cash accounting

is when cash changes hands, accrual accounting is action based. Budgeting is a financial

plan that sets goals and limits for spending. Forecasting is updating projections and financial performance

based on real time data. Budgeting is a planning process. Forecasting is a