EDI (Electronic Data Interchange) payment solutions allow companies to send and receive payment-related documents electronically. They replace paper checks and invoices with secure, standardized digital formats, reducing errors and processing time. Businesses use EDI payment systems to streamline accounts payable and receivable while ensuring compliance with financial regulations.
A disregarded entity is a business that is legally distinct from its owner but not treated as separate for federal tax reporting. The most common example is a single-member LLC, where the owner reports income and expenses on their personal tax return. This setup simplifies taxation while maintaining liability protection.
A cutoff date marks the final day on which certain transactions, applications, or actions are accepted for processing in a given period. In payroll and accounting, it determines which entries are included in financial statements or employee pay runs. Setting a clear cutoff date ensures accuracy, compliance, and timely reporting.
A contract employee is hired by a company for a specific period or project under a formal agreement. Unlike permanent employees, they typically do not receive full benefits like pensions or long-term job security. Businesses often use contract employees for flexibility, specialized skills, or short-term workforce needs.
A compound startup is a business that develops and scales several related products or services instead of focusing on just one. This approach allows the company to diversify revenue streams, cross-sell to customers, and strengthen its market position. By layering offerings, compound startups can achieve faster and more sustainable growth.
A compensation policy is a formal framework that defines how employees are rewarded for their work through pay, incentives, and benefits. It covers areas like salary structures, performance bonuses, allowances, and equity plans. A clear policy helps ensure fairness, compliance with labor laws, and alignment with business goals.
A Client Money Account (CMA) is a dedicated bank account where businesses hold money on behalf of clients. It ensures client funds remain separate from the company’s operational funds, protecting them in case of insolvency or financial disputes. CMAs are commonly used in industries like law, real estate, and financial services to maintain trust and compliance.
A cardholder is the person whose name appears on a debit or credit card and who is authorized to use it for payments. They are responsible for all transactions made with the card, including purchases and cash withdrawals. Cardholders must follow the issuing bank’s terms and ensure secure card usage to avoid fraud or misuse.
Business transactions are economic events that involve the exchange of goods, services, or money between two or more parties. Examples include sales, purchases, payroll payments, or loans. Each transaction is recorded in the company’s accounting system to track financial health and ensure accurate reporting.
Approval chains are predefined steps in a business process that specify who must authorize a request before it is finalized. Commonly used in payroll, expense management, or HR systems, they ensure compliance and accountability. By setting clear approval paths, companies reduce errors, prevent fraud, and maintain smooth operations.
Annualized salary is the estimated amount an employee would earn in a year if their current pay rate were applied for all 12 months. It’s often used for part-time, temporary, or new hires to compare pay on a yearly basis. Employers use it to standardize salaries, while employees use it to understand total earning potential.
A work visa is a government-issued authorization that lets a foreign citizen work legally in a country for a set period. It usually requires employer sponsorship and may be tied to a specific job or sector. Work visas are essential for global mobility, ensuring compliance with immigration and labor laws.
A wholly owned subsidiary is a business entity whose entire share capital is owned by another company, known as the parent company. This structure allows the parent to control decisions, finances, and strategy while the subsidiary operates as a separate legal entity. It is often used for global expansion, risk management, and compliance purposes.
A W-2 form is an IRS tax document that employers must provide to employees each year. It details total wages earned and the amount of federal, state, and other taxes withheld from paychecks. Employees use this form to file their income tax returns and verify their earnings with the IRS.
Upward mobility refers to the career progression opportunities employees have to move into higher positions within a company or industry. It often involves promotions, salary increases, and greater responsibilities. Strong upward mobility fosters employee motivation, retention, and long-term professional growth.
Tax residency is the status that defines which country has the right to tax an individual or business. It is usually determined by factors like the number of days spent in a country, permanent home, or economic ties. Being a tax resident can affect income tax obligations, eligibility for tax treaties, and potential double taxation.
Tangible rewards are measurable, physical benefits that employees receive in exchange for their work or achievements. Examples include cash bonuses, gift cards, company merchandise, or paid trips. These rewards motivate employees by offering immediate, visible recognition and can complement long-term benefits like promotions or career growth opportunities.
Talent acquisition is the long-term strategy businesses use to find and hire qualified employees. Unlike basic recruiting, it focuses on building employer branding, workforce planning, and nurturing candidate relationships. Effective talent acquisition helps organizations secure top talent and maintain a competitive advantage.
T and E stands for Travel and Entertainment expenses that employees incur while performing job-related duties. This includes costs like airfare, hotels, meals, and client entertainment. Companies usually reimburse these expenses under set policies, and tracking T&E helps control budgets and ensure compliance with tax regulations.
A stock grant is a form of employee compensation where a company awards shares to workers, usually to reward performance or encourage retention. These shares may come with a vesting period, meaning employees earn full ownership over time. Stock grants align employee interests with company growth by offering potential long-term financial benefits.