Chief Financial Officer A Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company. The CFO’s duties include tracking cash flow and financial planning as well as analyzing the company’s financial strengths and weaknesses and proposing corrective actions. In the business hierarchy, the CFO reports directly to the
Checking Account A checking account is a type of bank account that allows for easy access to funds for daily transactions, such as deposits, withdrawals, transfers, and direct payments. It is designed to facilitate frequent and immediate access to funds without incurring interest, making it a staple financial tool for both individuals and businesses. For
Check A check is a written, dated, and signed instrument that directs a bank to pay a specific amount of money from the drawer’s account to the payee or to their order. It serves as a way to transfer funds from one party to another without the need for carrying cash. In business, checks are
Check Stub A check stub, also known as a pay stub or paycheck stub, is a document that accompanies a paycheck, providing detailed information about the employee’s earnings, deductions, and net pay for a specific pay period. It serves as a record of payment, outlining how the total payment amount was calculated. In the business
Check Register A check register, also known as a cash disbursements journal, is a record-keeping tool used to track all written checks, cash payments, and outflows from a bank account. It serves as a detailed ledger documenting every transaction that affects a company’s or individual’s checking account, helping to manage finances and ensure accuracy
Check Guarantee A check guarantee is a service provided by banks or third-party providers that assures the recipient of a check that they will receive payment, even if the check bounces or is returned for insufficient funds. This service mitigates the risk of accepting checks as payment, enhancing confidence between buyers and sellers. Businesses frequently
Chart of Accounts A Chart of Accounts (COA) is a structured list of all the financial accounts in the general ledger of a company. It serves as the foundation for a business’s accounting system, categorizing transactions into accounts to streamline the recording, reporting, and analysis of financial activities. The COA is essential for businesses as
Charitable Remainder Trust A Charitable Remainder Trust (CRT) is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period and then donating the remainder of the trust to designated charities. This strategic financial planning tool not only benefits the
Charitable Lead Trust A Charitable Lead Trust (CLT) is a type of trust designed to provide financial support to one or more charitable organizations for a set period, after which the remaining assets are transferred to the trust’s beneficiaries, typically the donor’s heirs. This estate planning tool helps individuals support charitable causes while potentially reducing
Change of Tax Year A change of tax year refers to the alteration of a company’s or individual’s fiscal year-end, which is the date marking the end of their accounting period for tax purposes. This change requires approval from tax authorities and is made for various strategic, operational, or compliance-related reasons. Businesses might opt for