Business
dictionary.

A

Accelerated depreciation

A method allowing a larger proportion of an eligible asset's tax-depreciable amount to be recovered in the first year.

Acceptance report

A document recording the inspection and acceptance of goods, works or services and any observations.

Account balance

The difference between an account's total debit and credit amounts at a particular date.

Account ledger report

A statement showing entries, movements and balances in a ledger account for a period.

Account movements

The total amounts recorded on the debit or credit side of an account during a particular period.

Account statement

A document issued by a bank or account provider showing transactions and balances for a period.

Accounting asset

A resource controlled by an entity as a result of past events, from which future economic benefits are expected.

Accounting close

The checks, adjustments and transactions through which the records for an accounting period are finalised.

Accounting consolidation

Presenting a group's financial position as that of a single economic entity, eliminating relevant internal transactions.

Accounting journal entry

A document or entry describing the accounting treatment and justification for a transaction.

Accounting loss

A negative result for a period when accounting expenses exceed accounting income.

Accounting policies

The principles, bases and rules adopted by an entity for recognising, measuring and presenting accounting information.

Accrual accounting

The principle under which transactions are recognised when they occur, regardless of when payment is received or made.

Acid-test ratio

An indicator excluding inventories from current resources. A common formula is (current assets minus inventories) / current liabilities.

Acquisition cost

The purchase price and costs directly attributable to acquisition, after trade discounts and including non-recoverable taxes.

Actual income system

The determination of certain individuals' net income based on income and expenses recorded under tax rules.

Advance invoice

An invoice issued for an advance payment, which will be reconciled when the supply or service is invoiced under applicable rules.

Advance payment

An amount paid or received before goods are delivered, services are provided or an obligation is finally settled.

Affiliate marketing

Promotion in which a partner receives remuneration for attributed results, such as sales or new customers.

Affiliation

A relationship between persons or entities based on ownership, control or other legal criteria; in marketing, it means promotion remunerated through commission.

Amended tax return

A return correcting previously reported information using the procedure permitted for the obligation concerned.

ANAF

Romania's National Agency for Fiscal Administration, the institution that administers taxes, duties and contributions and performs tax control functions.

Annual leave

A period of paid annual rest to which an employee is entitled under employment legislation.

AOV — average order value

The average value of orders during a period. AOV = sales value included in the calculation / number of corresponding orders, using the same treatment for returns and VAT.

API

An interface through which two software systems exchange data and perform operations according to established rules, such as sending orders to invoicing.

ARR — annual recurring revenue

The annualised value of contracted recurring revenue, used in subscription businesses. It does not automatically include one-off revenue or receipts in advance.

Articles of association

A company's founding document, setting out its members, capital, activities and rules for organisation and management.

AWB

A shipping document or identifier used by the courier to collect, track and deliver a parcel.

B

B2B

A commercial relationship in which a business sells goods or services to another business.

B2C

A commercial relationship in which a business sells goods or services to an end consumer.

B2G

A commercial relationship between a business and a public institution or authority.

Balance sheet

A component of the financial statements presenting assets, liabilities and equity at a particular date.

Bank guarantee letter

A bank's commitment to pay a beneficiary under the conditions of the guarantee upon a complying demand from that beneficiary.

Bank journal

A chronological record of transactions carried out through bank accounts.

Bank loan

An amount made available by a bank that must be repaid under the contract together with applicable interest and costs.

Bank reconciliation

Comparing accounting records with the bank statement to identify and explain differences.

Bankruptcy

A procedure for liquidating a debtor's assets to cover liabilities under insolvency regulations.

Benchmarking

Comparing a company's processes or results with internal benchmarks, competitors or industry practices.

Beneficial owner

The individual who ultimately owns or controls an entity or in whose interest a transaction is carried out.

BNR

The National Bank of Romania, the central bank that conducts monetary policy and publishes, among other things, reference exchange rates.

Bootstrapping

Developing a business mainly using the founders' resources and the money generated by its operations.

Brand

The elements through which the public recognises and perceives a business, product or service.

Break-even point

The sales level at which revenue covers costs. In units: fixed costs / (unit price minus variable cost per unit), provided the margin is positive.

Budget

A plan for revenue, expenses, investments or cash flows over a future period.

Burn rate

The rate at which a business uses cash. Monthly net burn = cash payments minus cash receipts for the operations included in the analysis.

Business angel

An investor who finances a business, generally at an early stage, and may contribute experience and contacts.

Business establishment

A place where the company operates outside its registered office, subject to registration and authorisation formalities where applicable.

Business model

The way a business creates value for customers, delivers it and earns revenue to sustain its activities.

Business Model Canvas

A tool describing a business's customers, value proposition, channels, resources, activities, partners, costs and revenue on a single page.

Business plan

A document describing a business's objectives, market, resources, operations and financial projections.

Business travel order

A document used to authorise and substantiate business travel and to settle the related expenses.

Business valuation

Estimating a business's value using explicit methods and assumptions, such as cash flows, multiples or asset values.

Buyer persona

An indicative profile of a customer type, built from information about needs, behaviour and purchasing criteria.

C

CAC — customer acquisition cost

The average cost of acquiring a new customer. CAC = acquisition costs included in the analysis / number of new customers in the corresponding period.

CAEN

Romania's classification of national economic activities. CAEN codes identify a company's declared and authorised economic activities.

CAM

The work insurance contribution, a tax obligation payable by the employer on the income and under the conditions specified by the Tax Code.

Cap table

A record of ownership interests in a company showing the holdings of founders, investors and other holders, including the effect of convertible instruments.

CAPEX

Capital expenditure for acquiring or improving assets used over the long term.

Capital goods

Goods used on a lasting basis in an economic activity. For VAT purposes, the term has its own definition and adjustment rules.

Capital premium

An equity component that may arise, among other things, from the difference between the issue price and the nominal value of securities.

CAS

The social insurance contribution, mainly associated with the public pension system and payable in the cases prescribed by law.

Cash

Money available in the cash office and, for cash flow statement purposes, funds in demand deposit accounts.

Cash book

A daily record of cash receipts, cash payments and the cash balance.

Cash equivalent

A short-term, highly liquid investment readily convertible to a known amount of cash with an insignificant risk of changes in value.

Cash flow

Cash receipts and payments over a period. Net cash flow = receipts minus payments.

Cash on delivery

A collection method in which the carrier collects payment on delivery and subsequently remits it to the merchant.

Cash pooling

The centralised management of cash balances belonging to several entities in a group under the applicable agreements and rules.

Cash receipt

A supporting document for a cash receipt, used where regulations permit or require this form.

Cash register

An electronic fiscal cash register used to record transactions and issue fiscal receipts where required.

CASS

The health insurance contribution, payable for the income categories and according to the assessment bases established by law.

Certified accountant

A professional authorised to perform the activities of the accounting profession under legal conditions and professional rules.

Chart of accounts

The structure of accounts used in accounting records under the regulations applicable to the entity.

Churn rate

The proportion of customers lost during a period. Churn rate = customers lost / customers at the beginning of the period × 100.

CIF

Tax identification code, used to identify the taxpayer in dealings with the tax authorities.

CIM

An individual employment contract under which the employee undertakes to work under the employer's authority in exchange for a salary.

COGS — cost of goods sold

Costs attributed to goods actually sold during a period, separate from selling and administrative expenses.

Commercial guarantee

An additional commitment made by a guarantor concerning goods or services under the communicated conditions, separate from applicable statutory rights.

Commercial quotation

A sales proposal describing products or services, price and conditions, with effects depending on its content and acceptance.

Commission

Remuneration for arranging or carrying out a transaction, set as a fixed amount, percentage or combination of the two.

Company director

A person appointed to manage and represent the company within the limits of their mandate, the articles of association and the law.

Company member

A person or entity that contributes to a company's capital and holds ownership interests or other participation rights.

Compound interest

Interest also calculated on capitalised interest. Final capital = initial capital × (1 + rate per period) raised to the number of periods.

Concession

The right to exploit an asset, service or activity, granted for a period and under the conditions of a contract.

Confidentiality clause

A contractual provision establishing which information must be protected, who may use it and under what conditions.

Consumable material

An item used in operations that generally does not form a direct part of the finished product.

Contingent liability

A possible obligation depending on uncertain future events, or a present obligation that does not meet the conditions for recognition in the balance sheet.

Contract addendum

A document through which the parties amend or supplement an existing contract, for example its price, duration or payment terms.

Contribution margin

The amount remaining to cover fixed costs and generate profit. Contribution margin = sales revenue minus variable costs.

Conversion

Completion of a target action, such as an order or a request for quotation. In finance, it can mean exchanging a currency or converting an instrument.

Conversion rate

The proportion of interactions leading to the target result. Conversion rate = conversions / total eligible interactions × 100.

Corporate governance

The rules and mechanisms through which a company is managed, supervised and held accountable to stakeholders.

Corporate income tax

Tax calculated on the taxable result, determined by adjusting the accounting result under the Tax Code.

Cost centre

A department, project or other unit whose expenses are tracked separately for internal analysis.

Cost-benefit analysis

Comparing the costs of a decision with its estimated benefits to assess whether a project is worth undertaking.

Credit line

A facility allowing a company to draw and repay amounts within an approved limit and under contractual conditions.

Credit note

A corrective invoice cancelling or reducing all or part of the amounts on a previous invoice, with the necessary references.

Credit risk

The risk that a debtor will not meet payment obligations under the agreed conditions.

Creditor

A person or entity with a claim against another person or entity.

CRM

A system for organising customer relationships: contacts, sales opportunities, interactions and the history of the relationship.

Cross-selling

Proposing products or services complementary to a purchase, also known as cross-selling.

Crowdfunding

Financing a project through contributions from many participants in forms such as donations, rewards, loans or equity investment.

CUI

A unique registration code assigned upon registration in the trade register and used for tax identification. The RO prefix indicates normal VAT registration, where applicable.

Current assets

Assets used or converted into money in the normal operating cycle or in the short term, such as inventories, receivables and cash.

Current ratio

The ability to cover current liabilities with current assets. Current ratio = current assets / current liabilities.

Customer

A person or organisation purchasing goods or services; in accounting, trade receivables are tracked separately.

Customs duty

A liability imposed on imports or, in certain cases, exports of goods, depending on classification, origin and customs procedure.

D

D100

A return reporting payment obligations to the state budget, used for the taxes and duties included in the applicable form.

D101

The corporate income tax return, used for annual reporting and reconciliation of this tax.

D112

A return reporting social contribution liabilities, income tax and individual records of insured persons.

D212 — single tax return

A return through which individuals report income tax and social contributions for the categories and circumstances prescribed by law.

D300

The VAT return used to report transactions and determine VAT payable or the negative VAT balance for the tax period.

D301

A special VAT return used for certain transactions and categories of persons that do not report them through the normal return.

D390

A recapitulative statement of intra-Community transactions that must be reported under the applicable tax rules.

D394

An information return on certain supplies, services and purchases carried out within the country by persons registered for VAT.

D406

The information return through which the SAF-T standard audit file for tax is submitted, under the structure and obligations established by ANAF.

Daily travel allowance

An allowance for business travel. Entitlement and tax treatment depend on the circumstances and statutory limits.

Day labourer

A person performing occasional unskilled work in the sectors and under the conditions permitted by law.

Debit

The left-hand side of a ledger account. The meaning of a debit entry depends on the nature of the account; it does not automatically indicate a debt.

Debt-to-equity ratio

An indicator of dependence on debt financing. A common formula is total liabilities / equity, with the calculation basis specified.

Debtor

A person or entity with an obligation towards a creditor.

Decline in asset value

A reduction in an asset's value due to wear, obsolescence, damage or changes in economic conditions.

Declining-balance depreciation

A depreciation method that generally allocates higher expenses in the early years and lower expenses in subsequent years.

Deductible expenses

Expenses that can reduce the tax base under the conditions prescribed by law. Tax deductibility is not the same as accounting recognition.

Deductible input VAT

VAT on purchases for which entitlement to deduct is assessed according to use, documents and legal conditions.

Deferred income

An amount recorded for benefits that will be recognised as income in future periods under accounting rules.

Deferred tax

A future tax effect recognised for certain temporary differences and other items, only under accounting frameworks providing for this treatment.

Depreciation and amortisation

The systematic allocation of an asset's depreciable amount over its useful economic life. Accounting depreciation or amortisation may differ from its tax equivalent.

Detailed trial balance

A statement detailing account balances and movements by customer, supplier, product or other subsidiary records.

Digitalisation

Using digital data and tools to simplify processes such as invoicing, document management and reporting.

Dilution

A reduction in the proportion represented by an ownership interest when new securities are issued or conversion rights are exercised.

Discount

A reduction in price. Its commercial, accounting and tax treatment depends on the nature and timing of the reduction.

Dividend

A portion of profit distributed to members or shareholders under the law and the profit allocation resolution.

Dividend tax

Tax on dividend income, with rules on withholding, reporting, payment and possible exemptions.

Double-entry bookkeeping

A system in which each transaction affects at least two accounts, with total debits equal to total credits.

Doubtful receivable

A receivable for which there are indications that full or timely collection is uncertain and accounting adjustments may be needed.

Dropshipping

A sales model in which the retailer receives the order and the supplier ships the goods directly to the customer under the contractual relationships.

Due date

The date on which an obligation must be fulfilled, such as an invoice payment deadline.

Due diligence

Financial, legal, tax and commercial checks performed before an investment, acquisition or significant business relationship.

E

E-commerce

Selling and purchasing goods or services electronically, including through online stores and marketplace platforms.

e-Factura

A system for sending and receiving structured electronic invoices. In Romania, RO e-Factura has its own rules on the persons and transactions covered.

e-Transport

A national system for monitoring certain goods transport operations, with reporting and identification obligations in the cases prescribed by law.

e-TVA

A system through which the tax authority uses available data to prefill the VAT return and carry out related verification processes.

Early payment discount

A financial discount granted for settling an obligation before the agreed deadline.

EBIT

Earnings before interest and corporate income tax, used to analyse business performance.

EBITDA

Earnings before interest, corporate income tax, depreciation and amortisation. It is a performance indicator and does not represent available cash.

Economies of scale

The reduction in average unit cost as activity grows, within the limits of the company's capacity and organisation.

Electronic archiving

The organised retention of electronic documents, with measures for integrity, access and retrieval, according to the requirements applicable to each category.

Electronic invoice

An invoice issued, sent and received electronically. A structured XML invoice allows automated data processing.

Electronic signature

Electronic data associated with other data and used by the signatory to sign. Its legal effects depend on the type and applicable conditions.

Elevator pitch

A very short presentation explaining the problem solved, the solution and the value of a business to the listener.

Employee

A person who works for an employer under an individual employment contract in exchange for a salary.

Employer

An individual or legal entity that can hire employees and assumes the obligations arising from employment relationships.

Entrepreneur

A person who starts and organises an economic activity, assuming the risks and making the decisions needed to develop it.

Equity

The residual interest in the company's assets after deducting liabilities. Equity = total assets minus total liabilities.

Equity and liabilities

A term used for the sources of financing of assets, including equity and obligations presented according to the balance sheet structure.

Equity security

An instrument representing an interest in an entity's capital under the applicable accounting or tax definition.

ERP

An information system integrating company processes and data, such as sales, inventories, purchases and accounting.

Exchange difference

Income or expense resulting from measuring or settling foreign currency items at different exchange rates.

Exchange rate

The rate of exchange between two currencies. The rate used for accounting or tax purposes depends on the transaction and applicable rules.

Excise duty

An indirect tax applied to certain products, such as alcohol, tobacco and energy products, under specific tax rules.

Exit

An investor's or founder's complete or partial withdrawal from a business through a sale or another transaction.

Expense

A decrease in economic benefits recognised in accounting through a reduction in assets or an increase in liabilities, reducing equity except for distributions to owners.

Expense report

A document summarising and substantiating amounts spent for business purposes, together with the related supporting documents.

Explanatory notes

Information supplementing the financial statements, presenting accounting policies, relevant details and explanations.

Export

In commercial usage, a sale abroad; for customs and VAT purposes, the removal of goods from the relevant territory under applicable rules.

F

Factoring

A transaction through which a company assigns receivables to a financier and may receive financing, administration services or protection against non-payment.

Fair value

A value determined under the applicable accounting framework, associated with exchanging an asset or settling a liability between knowledgeable, independent parties.

FIFO

An inventory issue valuation method: the goods received first are considered to be issued first.

Finance lease

A lease that substantially transfers the risks and rewards of ownership under the criteria of the relevant accounting or tax framework.

Financial analysis

Interpreting financial statements and indicators to understand a business's profitability, liquidity, indebtedness and risks.

Financial audit

An independent examination of financial statements to express an opinion under the applicable reporting framework and standards.

Financial indicator

A value or ratio calculated from financial data to assess an entity's performance, liquidity or risks.

Financial statements

The documents presenting an entity's financial position and performance, with their composition determined by the applicable accounting framework.

Financial year

The period for which an entity prepares its annual financial statements under the applicable rules.

Fiscal receipt

A document issued by a fiscal cash register for transactions subject to this requirement, recording the sale and receipt of payment.

Fixed asset

An asset used on a lasting basis in business activities. Accounting recognition and tax classification must be checked separately under the applicable criteria.

Fixed expenses

Expenses that remain relatively constant within a particular range of activity, such as contractual rent.

Foreign exchange risk

The risk that exchange rate movements will affect the value of foreign currency receipts, payments, receivables or liabilities.

Franchise

A business arrangement through which an operator uses another's brand and business system under the conditions of the contract.

Free cash flow

Cash remaining after funding operations and relevant investments. A common formula is operating cash flow minus investment in long-term assets.

Fulfilment

The services involved in preparing and delivering orders: storage, picking, packing, shipping and, where applicable, returns.

G

Garnishment

An enforcement measure against amounts or goods owed to a debtor by a third party under the applicable procedure.

GDPR

The General Data Protection Regulation, which establishes rules for processing personal data.

General journal

A mandatory accounting register in which economic and financial transactions are recorded chronologically.

General ledger account

An account grouping economic information at a general level under the applicable chart of accounts.

General meeting of members (AGA)

The body through which members make decisions about the company, such as approving financial statements or distributing profits.

GMV

The gross value of goods sold through a platform during a period, calculated using explicit rules for cancellations, returns and taxes.

Goods dispatch note

A document accompanying goods in the circumstances specified by regulations and recording information about the transport and goods dispatched.

Goodwill

A term used for purchased goodwill; in business valuation, it can describe advantages associated with reputation, relationships and organisation.

Grant

An amount awarded for a specific purpose, with eligibility, use and reporting conditions established by the funder.

Gross margin

The proportion of gross trading profit in sales. Gross margin = (net sales minus cost of goods sold) / net sales × 100.

Gross salary

Salary remuneration before deductions borne by the employee. It is not the same as the employer's total cost.

Group of companies

A set of entities linked by control or ownership interests; the exact classification depends on the regulation being considered.

H

Hedging

Reducing exposure to price, exchange rate or interest rate risk through hedging transactions.

Holding company

A company holding interests in other entities for control, management or investment purposes.

I

IBAN

A standardised code identifying a bank account and allowing payments to be directed to it.

Impairment allowance

An accounting adjustment to an asset's value when its recoverable or realisable amount is below its carrying amount.

Import

Bringing goods in from outside the relevant customs territory, subject to the applicable formalities and tax treatment.

Income

An increase in economic benefits recognised in accounting through an increase in assets or a reduction in liabilities, increasing equity except for owners' contributions.

Income statement

A financial statement presenting income, expenses and the result for a period.

Income tax

Tax applied to individuals' income for the categories and under the conditions established by law.

Incoterms

Trade rules published by the International Chamber of Commerce that allocate certain obligations, costs and risks between seller and buyer.

Individual enterprise

A form of economic activity organised by an individual entrepreneur, without separate legal personality.

Inflation

A general increase in prices in an economy that reduces the purchasing power of money.

Insolvency

A financial state characterised by insufficient available funds to pay debts that are certain, quantified and due, as prescribed by law.

Instalment payment arrangement

Payment of an obligation in several instalments under a contractual agreement or tax authority approval and the associated conditions.

Intangible assets

Identifiable assets without physical form, such as certain licences, software and intellectual property rights.

Intellectual property

Rights over creative works, trademarks, inventions and other items protected by specific legislation.

Interest

The cost of using borrowed capital, or remuneration for funds placed, determined under the contract.

Internal audit

An independent activity assessing an organisation's processes, controls and risks to support improvements in its operation.

Intra-Community acquisition

The purchase of goods transported between two European Union Member States, with VAT treatment determined by the transaction and the parties involved.

Intra-Community service

A service supplied between partners in different Member States. VAT treatment depends on the place of supply, the nature of the service and the parties' status.

Intra-Community supply

A supply of goods transported from one European Union Member State to another, with VAT treatment depending on whether the legal conditions are met.

Inventory

Goods held for sale, production or consumption in operations, classified under accounting regulations.

Inventory management

The organisation and recording of goods managed by a person or unit, including receipts, issues and stock levels.

Inventory register

A mandatory accounting register recording the results of inventory verification of assets, liabilities and equity items under the regulations.

Inventory turnover

An indicator of how often inventory is renewed. A common formula is cost of goods sold / average inventory valued at cost.

Inventory value report

A document recording the value of goods received, issued and held in an inventory location under the method used.

Inventory verification

Verifying the existence and measuring the value of assets, liabilities and equity items, and comparing the results with the accounting records.

Investment

Allocating resources in the present to obtain future benefits while assuming the related risks.

Invoice

A document recording a supply of goods or services and the required tax information. Issuing it does not automatically prove payment.

Invoice series

An identifier used together with the number to organise and identify invoices under the procedure and rules applicable to the issuer.

IPO

An initial public offering through which a company's shares are offered to the public for the first time under the conditions of the relevant market.

IRR — internal rate of return

The discount rate at which the net present value of a project's cash flows is zero. Some projects may have several such rates or none.

J

Job description

A document describing a position's duties, responsibilities and requirements in connection with the employment relationship.

Joint venture

An arrangement in which two or more parties develop a joint activity, sharing resources, control and results under their agreement.

Joint venture arrangement

An agreement under which participants share the profits and losses of certain operations without thereby creating a separate legal entity.

K

Know-how

Practical knowledge, methods and experience that can be used in an economic activity.

KPI

A key performance indicator chosen to measure progress towards a specific objective, with a clear definition and period.

KYC

The process of understanding and verifying a customer, used particularly to manage risks and comply with anti-money-laundering obligations.

L

Late payment penalty

An amount owed for failing to fulfil an obligation on time, established by contract or law.

Lead

A person or organisation that has shown interest and may become a customer according to the company's sales criteria.

Ledger account

A record-keeping tool grouping changes in, and the balance of, an asset, liability, equity item, income or expense.

Liability

A present obligation arising from past events, the settlement of which is expected to result in an outflow of resources.

Linked enterprises

Entities with control relationships or other links defined by the applicable regulation; the criteria differ depending on the purpose of the analysis.

Liquidation

The process of realising an entity's assets and settling its obligations before its existence ends, as prescribed by law.

Loan-for-use agreement

A contract through which an asset is provided for use free of charge, with an obligation to return it under the agreed conditions.

Logistics

Planning and coordinating procurement, storage, handling and transportation of goods.

Low-value inventory item

An item tracked separately in inventory management and treated under the accounting policies and rules applicable to this category.

LTV — customer lifetime value

An estimate of the economic value generated by a customer over the relationship. The model must specify whether it measures revenue, margin or profit.

LTV/CAC

The ratio of a customer's estimated value to the cost of acquiring them, calculated using comparable bases and periods.

M

Management accounting

Internal recording and analysis of costs, revenue and results by product, activity or responsibility centre.

Mandate agreement

A contract through which a person undertakes to enter into legal acts on behalf of another within the authority granted.

Market share

A company's share of sales in a defined market. Market share = company sales / total market sales × 100.

Marketplace

A platform facilitating sales by multiple merchants to customers under its own rules and commission structure.

Markup

The difference between the selling price and acquisition cost. The markup percentage is calculated by dividing this difference by cost, using the same VAT basis.

Materials issue note

A document recording the release of materials from inventory for consumption in the company's activities.

Meal voucher

A value voucher granted to employees for food, with regulated use and tax treatment.

Member loan

Financing provided to the company by a member, recorded separately from capital contributions and profit distributions.

Membership interest

A fraction of the share capital of a limited liability company granting its holder the rights provided by law and the articles of association.

Merger

A reorganisation transaction through which companies' assets and liabilities are combined, under the procedure and effects prescribed by law.

Microenterprise

For tax purposes, a Romanian legal entity meeting the conditions of the microenterprise regime. The tax category must not be confused with accounting classification by size.

Microenterprise income tax

A tax regime applicable to legal entities meeting the legal conditions, with taxation on a revenue base determined under tax rules.

Milestone

An important point or result in a project, used to check progress and sometimes as a condition for payment.

Minimum stock

A stock level established as a benchmark for replenishment or business continuity.

MRR — monthly recurring revenue

The normalised monthly value of recurring subscription revenue. It excludes one-off revenue and is not the same as cash receipts for the month.

MVP

An initial product version allowing an important hypothesis to be tested with real users and a controlled amount of effort.

N

NDA

A non-disclosure agreement establishing rules for protecting and using information exchanged between the parties.

Net carrying amount

The amount at which an asset is recorded after deducting depreciation, amortisation and relevant impairment allowances.

Net profit

The positive result remaining after recognising all income, expenses and taxes for the period.

Net profit margin

The proportion of net profit in the sales revenue included in the calculation. Net margin = net profit / net sales × 100.

Net salary

Salary remaining after applicable employee deductions, with the adjustments relevant to the actual payment.

Net turnover

Revenue from sales of products, goods and services in ordinary activities, after trade discounts and excluding VAT and other directly related taxes.

Networking

Building and maintaining professional relationships that can facilitate information exchange, referrals and collaboration.

NIR — goods received and discrepancies note

A document used to receive goods and record discrepancies in the cases specified by financial and accounting document regulations.

Nominal value

The stated value of a security or instrument, which may differ from its market price.

Non-current assets

Assets intended for long-term use in the company's activities: equipment, buildings, software or financial investments.

Non-current financial assets

Investments and receivables held over the long term and recognised in the appropriate category under accounting regulations.

Non-deductible expenses

Expenses that do not reduce the tax base, either in full or for the portion excluded by law, even if they are recorded in the accounts.

Non-repayable funding

Funding that does not have to be repaid if the beneficiary complies with the programme and contract conditions.

NPV — net present value

The difference between the present value of a project's receipts and payments, using an explicit discount rate.

NRR — net revenue retention

The proportion of recurring revenue retained from existing customers, including expansions and subtracting reductions and losses, without new customers.

O

Obsolescence

The loss of an asset's economic usefulness due to technological progress or changes in demand, even if the asset remains physically functional.

OCR

Optical character recognition: converting text in an image or scan into processable text. The result may need review.

OKR

A method for setting objectives and measurable key results used to track progress.

Onboarding

The process through which a new customer or employee understands and starts using a product or carrying out their work.

ONRC

Romania's National Trade Register Office, the institution managing the trade register and related registration services.

Operating cash flow

Cash generated or used by operating activities, separately from investing and financing cash flows.

Operating lease

A lease that does not meet the finance lease criteria under the applicable framework, with its treatment established by the relevant regulations.

OPEX

Operating expenses needed for day-to-day activities, separate from investment in long-term assets.

Opportunity cost

The benefit of the best alternative forgone when a particular use of resources is chosen.

OSS

The VAT One Stop Shop, allowing centralised reporting and payment of VAT for certain eligible cross-border transactions within the European Union.

Output VAT

VAT relating to transactions on which the company is required to charge tax under the tax rules.

Outsourcing

Contracting an activity to an external provider, such as accounting services, logistics or technical support.

Outsourcing

Contracting an activity to a specialised provider under a contract and with defined responsibilities.

P

Payback period

The estimated period over which the net cash flows generated by a project recover the initial investment, using the chosen method.

Payment guarantee

A mechanism through which a third party or an asset secures performance of an obligation if the debtor does not fulfil it.

Payment order

An instruction to a payment service provider to transfer an amount to a beneficiary.

Payment schedule

A list of obligations or receivables organised by payment or collection due dates.

Payment term

The period or date agreed for settling an obligation, used to determine the due date.

Payroll register

A document calculating and recording salary entitlements, contributions, taxes and net amounts payable.

Penalty clause

A clause through which the parties determine in advance the performance owed if the principal obligation is not fulfilled.

Permanent establishment

A tax concept that may determine taxation of a non-resident's activities in a country under the relevant legislation and treaty.

Perpetual inventory

An inventory recording method in which receipts and issues are recorded as they occur, allowing the book inventory level to be known.

Personal allowance

An amount reducing the income tax assessment base for certain employment income, subject to legal conditions.

PESTEL analysis

Assessing political, economic, social, technological, environmental and legal factors that may affect a business.

PFA

An individual authorised to carry out economic activities under the law; it has no legal personality separate from its holder.

Pitch deck

A business presentation for investors or partners explaining the problem, solution, market, revenue model and funding sought.

Prepaid expenses

Amounts recorded for goods or services that will be recognised as expenses in future periods.

Prepayment

A payment made before an obligation falls due or before goods or services are received.

Price excluding VAT

The value of a supply of goods or services before VAT is added, where the tax applies.

Primary bookkeeping

The preparation, collection and organisation of supporting documents that underpin accounting records.

Pro forma invoice

A commercial document presenting an offer or a payment request. It does not replace an invoice and does not, by itself, serve as a tax document.

Product-market fit

A situation in which a product meets a market's needs well enough to sustain demand and repeated use.

Production cost

The cost of materials, labour and other resources attributable to manufacturing a product or providing a service, under accounting rules.

Profit before tax

In the income statement, the result before corporate income tax. In commercial analysis, gross profit on sales uses a different basis and must be defined separately.

Promissory note

A credit instrument through which the issuer undertakes to pay the beneficiary a specified amount under the conditions stated in the document.

Property, plant and equipment

Assets with a physical form used over the long term, such as buildings, machinery, vehicles and equipment.

Provision

A liability of uncertain timing or amount, recognised when the accounting conditions are met. It does not represent a cash reserve.

Public procurement

The purchase of goods, services or works by a contracting authority or entity through the procedures prescribed by law.

Purchase journal

A record of purchases and the information needed to track VAT, depending on the company's obligations.

Purchased goodwill

An item recognised on the acquisition of a business under accounting regulations, relating to benefits that cannot be separately identified.

Q

Qualified digital certificate

A certificate issued by a qualified trust service provider and used to verify a qualified electronic signature.

Qualified electronic signature

An advanced electronic signature created with a qualified device and based on a qualified certificate; it has the legal effect of a handwritten signature under eIDAS.

Quality assurance

Quality assurance processes aimed at preventing defects and meeting the requirements of a product or service.

Quick ratio

The English term for the acid-test ratio, an indicator of short-term payment capacity without selling inventories.

R

Raw material

An item directly involved in manufacturing products and incorporated wholly or partly into the finished product.

Rebate

A reduction or benefit granted for meeting certain conditions, such as early payment or compliance with tax requirements.

Receipt of funds

An inflow of money into the cash office or an account. Receipt may occur at a different time from revenue recognition.

Receivable

The right to receive money, goods or services from a debtor, such as an amount due under an invoice.

Reconciliation adjustment

Adjusting an amount or item previously recorded to reflect the final value or correct treatment.

REGES-ONLINE

Romania's online general employee register, used to record and transmit data on employment relationships.

Registered office

A company's official address, recorded in the appropriate documents and registers.

Registered trademark

A sign protected through registration that distinguishes its owner's goods or services in the relevant classes and territories.

Reinvestment

Using resources generated by operations to develop the business rather than distributing them in full.

Remuneration package

All elements of remuneration and benefits offered to an employee, with tax treatment specific to each component.

Reserves

Equity components created from profit or other permitted sources. They do not automatically mean separately held cash.

Residual value

The estimated amount that could be obtained from disposing of an asset at the end of its useful life, after disposal costs.

Retained earnings or accumulated losses

Profit or loss from earlier periods remaining in equity until allocated or covered.

Retargeting

Promotion directed at people who have previously interacted with a business, in compliance with rules on data and commercial communications.

Retention rate

The proportion of customers in an initial cohort who remain active at the end of the period, excluding new customers.

Retrospective rebate

A trade discount granted subsequently, generally on all transactions with a partner over a particular period.

Return

The customer's return of goods and the handling of the commercial, logistical and financial consequences according to the reason and applicable conditions.

Revaluation

Updating the carrying amount of certain assets using the method and conditions permitted by accounting regulations.

Reverse charge

A VAT mechanism under which the recipient is responsible for accounting for the tax for the transactions and under the conditions prescribed by law.

ROA

Return on assets. A common formula is net profit / average total assets × 100, with the calculation basis specified.

ROAS

The ratio of revenue attributed to advertising to advertising expenditure. It does not directly measure business profit.

ROE

Return on equity. ROE = net profit / average equity × 100; interpretation requires care when equity is small or negative.

ROI

Return on investment. ROI = net gain attributable to the investment / investment cost × 100 for the period analysed.

Royalty

Payment for the use of, or right to use, rights or assets under the contract and the applicable tax definition.

Runway

The estimated time until cash runs out. Runway in months = available cash / monthly net burn, when net burn is positive.

S

SaaS

A software delivery model providing online access, generally by subscription, with technical administration handled by the provider.

SAF-T

The standard audit file for tax, allowing accounting and tax information to be submitted to the tax authority in a structured form.

Safety stock

An additional quantity held to reduce the risk of running out of goods when demand or supply fluctuates.

Sales journal

A record of supplies of goods and services and information relevant to VAT and reporting.

Sales target

A commercial objective expressed in value, volume or number of customers, set for a period and a team.

Scalability

A business's ability to handle greater volume without proportionate increases in costs and resources.

Scrapping

Removing goods that can no longer be used from service and from the records, based on the necessary documents and approvals.

Secondment

A temporary change of workplace to another employer to carry out work in that employer's interest under the conditions prescribed by law.

Seed funding

Early-stage funding used to validate the product, build the team and support initial development.

Self-employment

Economic activity carried out on one's own account that meets the applicable tax criteria for independence.

SEO

Improving a website's structure, content and technical accessibility so that search engines can discover and understand it.

Set-off

The settlement of reciprocal obligations between the same parties, under the applicable conditions, up to the amount of the smaller obligation.

Settlement

The discharge or reconciliation of a financial obligation through payment, set-off or other permitted methods.

Share

A security representing a fraction of the capital of a joint-stock company and granting financial rights and, where applicable, voting rights.

Share capital

The value of contributions subscribed by members or shareholders and recorded in the articles of association. It does not automatically represent the money available in the company's bank account.

Shareholder

A person or entity that holds shares in a company and has the rights attached to them.

Sick leave

An absence supported by a medical certificate, with entitlements and allowances determined by the type of leave and legal conditions.

Single inspection register

A register recording inspections carried out by the competent authorities under the conditions prescribed by law.

Single-entry bookkeeping

A record-keeping system applicable to certain persons or activities, based on specific registers and rules, without the full double-entry mechanism.

SKU

An internal code used to identify and track a product or inventory variant.

SLA

An agreement defining measurable service levels, such as availability or response time, and the consequences of failing to meet them.

Software licence

The right to use software within the limits established by the rights holder and the contract.

Solvency

An entity's ability to cover its long-term obligations, analysed through the structure of its assets and liabilities and available resources.

Special VAT code

Tax registration for certain intra-Community transactions. It is not equivalent to normal VAT registration for all transactions.

Sponsorship

Material or financial support provided to an eligible beneficiary under a contract and the conditions of the relevant legislation.

SPV

Spațiul Privat Virtual, ANAF's electronic service for communicating with taxpayers and accessing tax documents and services.

SRL

A limited liability company, a legal entity separate from its members, whose liability is limited under the conditions prescribed by law.

SSM

Occupational health and safety: measures to prevent occupational risks and protect workers' health and safety.

Stakeholder

A person or organisation influencing or influenced by a business's activities, such as customers, employees or investors.

Stamp

An identification tool used on documents. Whether it is required must be checked for the particular circumstances; it does not replace the necessary signature or authorisation.

Standard income assessment

An annual tax assessment base set for certain self-employed activities, with the adjustments and conditions prescribed by tax legislation.

Startup

An early-stage business seeking to validate a business model and often aiming for rapid growth.

Stock card

A document recording the quantities received, issued and held in inventory for an item.

Stock option plan

A programme that may grant beneficiaries the right to acquire company securities, subject to specific contractual and tax conditions.

Straight-line depreciation

A method that allocates the depreciable amount evenly over the useful life. Annual depreciation = depreciable amount / number of years.

Subscription

The right to access a product or service for a period in exchange for a recurring payment or a payment made in advance.

Subsidiary account

A breakdown of a general ledger account used to track an individual customer, supplier, product or project separately.

Subsidy

Assistance provided to an entity in exchange for compliance with conditions relating to its activities, with its own accounting recognition rules.

Supplier

A person or entity supplying goods or services to the company.

Supporting document

A document recording an economic or financial transaction and supporting its recognition in the accounts.

SWIFT/BIC

A code identifying a financial institution and used to route certain bank payments.

SWOT analysis

Identifying the strengths, weaknesses, opportunities and threats of a business or project.

T

Tax base

The amount to which a tax, duty or contribution rate is applied, determined under the relevant tax rules.

Tax chargeability date

The point from which the tax authority can demand the tax under the applicable rules. For VAT, it may differ from the invoice date.

Tax clearance certificate

A document issued by the tax authority showing tax obligations and other information in its records at the relevant date.

Tax Code

The legislation governing the main taxes, duties and contributions. In everyday usage, the term can also mean a tax identifier.

Tax compliance

Meeting registration, record-keeping, reporting and payment obligations under applicable tax legislation.

Tax control

An examination by the competent authority of compliance with tax obligations, using the procedures prescribed by law.

Tax domicile

The address determined under tax rules for administering a taxpayer's obligations; it may differ from the registered office.

Tax loss

A negative taxable result determined under the law, with its own reporting and recovery rules.

Tax obligation

A duty concerning reporting, payment or other requirements established by tax legislation.

Tax offence record

A record maintained by the tax authority of certain tax, accounting or customs offences and circumstances specified by law.

Tax period

The interval for which a particular tax obligation is calculated or reported, depending on the applicable regime.

Tax records register

A record of the information needed to determine the taxable result or taxable income according to the taxpayer's category.

Tax registration profile

The set of tax obligations and corresponding periods declared in the authority's records for a taxpayer.

Tax residence certificate

A document confirming a person's tax residence for the application of treatments provided by legislation and tax treaties.

Tax threshold

A value or volume limit established by legislation, where reaching or exceeding it triggers certain obligations or changes of regime.

Taxable profit

A positive taxable result on which corporate income tax is calculated, after the applicable adjustments and loss recovery rules.

Team building

An activity organised to improve teamwork. The classification of the expense and any benefits is assessed according to the actual substance and documents.

Teleworking

A form of work organisation in which the employee performs their duties away from the workplace arranged by the employer, using information technology, as prescribed by law.

Temporary duty assignment

The temporary performance by an employee of duties away from their workplace, at the employer's instruction.

Temporary lay-off

A common term for the temporary interruption or reduction of activity under the law, affecting employees' work and allowances.

Term sheet

A document setting out the main terms of an investment or financing. Whether clauses are binding depends on their wording and the applicable law.

Timesheet

A record of time worked, absences and other circumstances relevant to payroll and employment law compliance.

Trade allowance

A trade discount generally granted for non-conformities or particular conditions of the goods supplied.

Trade credit

Financing implicitly provided by deferring payment for goods or services supplied between trading partners.

Trade discount

A reduction in selling price, such as an allowance, discount or rebate, treated according to when and why it is granted.

Trading partner

A customer, supplier or other collaborator with whom the company carries out economic transactions.

Transaction

An economic or financial operation between parties that may create rights, obligations and accounting entries.

Transfer price

The price used in a transaction between related parties, examined for tax purposes by reference to the arm's length principle.

Treasury

The management of an entity's cash and financing; in accounting, it includes cash and bank accounts and other specific instruments.

Trial balance

A statement of ledger accounts showing balances and movements and allowing the arithmetic consistency of entries to be checked.

TVA (VAT)

Value added tax, an indirect tax on consumption. Collection, deduction and reporting depend on the transaction and tax status.

U

UIT

A unique identification code generated in the RO e-Transport system for a declared transport operation, subject to the applicable conditions and validity period.

Unit of measure

A reference for expressing the quantity of goods or services, such as a piece, kilogram, litre or hour.

Unit price

The price of one unit of a product or service. The interpretation of the total depends on quantity, discounts and whether VAT is included or excluded.

Upselling

Proposing a higher-level or more complete version of the product or service the customer intends to buy.

Useful economic life

The period during which an asset is expected to be available for use, or the production volume expected to be obtained from it.

V

Variable expenses

Expenses that change with the level of activity, such as materials used for manufactured products.

VAT cash accounting

A special regime deferring VAT chargeability on eligible transactions until payment is received, with the associated exceptions and deduction rules.

VAT payable

The amount due for the tax period after applying the rules for VAT settlement, adjustment and carry-forward.

VAT refund

The tax authority's repayment of a negative VAT balance claimed for refund following the applicable procedure.

VAT-registered person

A common term for a person with normal VAT registration. Rights and obligations depend on the transaction and applicable regime.

Vehicle logbook

A document recording vehicle use, routes and other information needed to substantiate journeys.

Venture capital

Equity financing provided to companies with growth potential in exchange for assuming a high level of risk.

Vesting

The gradual acquisition of rights, for example over shares, based on time or the fulfilment of conditions.

VIES

A European system for checking the validity of VAT numbers for intra-Community transactions. The result alone does not prove that all exemption conditions are met.

Volume discount

A trade discount generally granted according to sales volume or the relationship with a customer.

W

WACC

The weighted average cost of capital, combining the cost of equity and debt according to the weights and tax treatment used in the analysis.

Webhook

An automatic notification sent by one system to another when an event occurs, such as payment of an invoice or placement of an order.

Working capital

The net resources available for day-to-day operations. Net working capital = current assets minus current liabilities.

Working capital

The English term for working capital, used to analyse the financing of day-to-day operations.

Working capital (long-term funding basis)

The surplus of stable funding over non-current assets. Working capital = permanent capital minus net non-current assets.

Working capital requirement

The financing required for the operating cycle. A common formula is inventories plus operating receivables minus operating liabilities.

Working day

A day considered a working day for the activity or deadline being examined, with exclusions established by law or contract.

X

XBRL

A standard for representing and electronically exchanging business information and structured financial reports.

XML

A structured text format for exchanging data. In tax reporting, the file must comply with the schema and rules of the relevant form or system.

Y

Yield

The yield of an instrument or investment, calculated using the stated method and period; it may differ from total return.

Z

Z report

A daily fiscal closing report issued by an electronic fiscal cash register.