Finance (In-house) Jargon Buster
Budgeting – Management teams and accountants in a business will work together to set a budget for a business’s departments and the business as a whole. This focuses on potential revenue and necessary/potential expenditure for a department for its projects, workforce etc., and sets a maximum ‘allowance’ of funding to cover this for a set period of time.
Financial analysis – The scope for financial analysis in in-house finance is huge! Depending on the role and company it could involve accounting, financial markets research, financial reporting or valuations. Financial analysis helps a company to develop strategy across the business.
Forecasting – This involves using a number of accounting and financial analysis methods by taking a company’s financial data, such as sales figures, and making financial predictions based on this information. It’s frequently used to help allocate budgets in in-house finance practice.
TMS – Treasury Management System. This software helps to manage a company’s cash flow. Professionals in in-house finance departments may well have to work with software such as this.