REFERENCE LIBRARY
The close glossary
Plain definitions for the words finance teams use when they close the books, prove the numbers and bring AI into the process. Every entry has three parts: what it means, what it looks like in practice, and what a reviewer or auditor checks. Written by people who have sat through fieldwork.
100 terms
Close & Reconciliation
From cut-off to lock: the steps that make a month's numbers complete.
25 termsAudit, Controls & Evidence
What auditors test, what they ask for and what counts as proof.
25 termsAI in Finance
Models, agents, skills and MCP, explained for the people who sign the numbers.
25 termsPE & VC Finance Ops
The reporting, covenant and cash vocabulary of sponsor-backed companies.
25 terms1
- 13-week cash flowPE & VC Finance Ops
A
- Account reconciliationClose & Reconciliation
- AccrualClose & Reconciliation
- Audit trailAudit, Controls & Evidence
- Audit evidenceAudit, Controls & Evidence
- Audit samplingAudit, Controls & Evidence
- Audit adjustmentAudit, Controls & Evidence
- AI agentAI in Finance
- Agentic workflowAI in Finance
- AI governanceAI in Finance
- Add-on acquisitionPE & VC Finance Ops
- Adjusted EBITDAPE & VC Finance Ops
- ARRPE & VC Finance Ops
B
- Bank reconciliationClose & Reconciliation
- Board packPE & VC Finance Ops
- Burn multiplePE & VC Finance Ops
C
- Close calendarClose & Reconciliation
- Close checklistClose & Reconciliation
- Cut-offClose & Reconciliation
- Control deficiencyAudit, Controls & Evidence
- Completeness and accuracyAudit, Controls & Evidence
- COSO frameworkAudit, Controls & Evidence
- Claude SkillsAI in Finance
- Code executionAI in Finance
- Context windowAI in Finance
- Confidence scoreAI in Finance
- Covenant compliancePE & VC Finance Ops
- Covenant headroomPE & VC Finance Ops
- Cash burnPE & VC Finance Ops
- Capital callPE & VC Finance Ops
- Carve-outPE & VC Finance Ops
- Client accounting servicesPE & VC Finance Ops
D
- Days to closeClose & Reconciliation
- Deposit in transitClose & Reconciliation
- Deferred revenueClose & Reconciliation
- Deterministic vs probabilistic outputAI in Finance
- Data lineageAI in Finance
E
- Explainable AIAI in Finance
- EvalsAI in Finance
- EBITDA bridgePE & VC Finance Ops
- EBITDAPE & VC Finance Ops
F
- Flux analysisClose & Reconciliation
- Fund administratorPE & VC Finance Ops
- Fractional CFOPE & VC Finance Ops
G
- GroundingAI in Finance
H
- Human-in-the-loopAI in Finance
- HallucinationAI in Finance
I
- Intercompany reconciliationClose & Reconciliation
- Intercompany eliminationClose & Reconciliation
- ICFRAudit, Controls & Evidence
- IPEAudit, Controls & Evidence
- ITGCAudit, Controls & Evidence
J
- Journal entry testingAudit, Controls & Evidence
K
- Key controlAudit, Controls & Evidence
L
- LeadsheetAudit, Controls & Evidence
- Large language modelAI in Finance
- Least privilege accessAI in Finance
M
- Month-end closeClose & Reconciliation
- Materiality thresholdClose & Reconciliation
- Management review controlAudit, Controls & Evidence
- Material weaknessAudit, Controls & Evidence
- Model Context ProtocolAI in Finance
- Monthly reporting packagePE & VC Finance Ops
N
- Net working capital pegPE & VC Finance Ops
- Net revenue retentionPE & VC Finance Ops
- Net asset valuePE & VC Finance Ops
O
- Outstanding checkClose & Reconciliation
- Operating partnerPE & VC Finance Ops
P
- Prepaid expenseClose & Reconciliation
- PBC listAudit, Controls & Evidence
- Preparer and reviewerAudit, Controls & Evidence
- Prompt injectionAI in Finance
- Portfolio companyPE & VC Finance Ops
- Platform companyPE & VC Finance Ops
Q
- Quality of earningsPE & VC Finance Ops
R
- Reconciling itemClose & Reconciliation
- Reversing entryClose & Reconciliation
- RollforwardAudit, Controls & Evidence
- ReperformanceAudit, Controls & Evidence
- Retrieval-augmented generationAI in Finance
- ReproducibilityAI in Finance
- Rules engineAI in Finance
- RunwayPE & VC Finance Ops
S
- Soft closeClose & Reconciliation
- SubledgerClose & Reconciliation
- Suspense accountClose & Reconciliation
- SOX 404Audit, Controls & Evidence
- Segregation of dutiesAudit, Controls & Evidence
- Substantive proceduresAudit, Controls & Evidence
- SOC 1 reportAudit, Controls & Evidence
- SOC 2 reportAudit, Controls & Evidence
- SKILL.mdAI in Finance
- SQL traceAI in Finance
- Shadow AIAI in Finance
T
- Tie-outClose & Reconciliation
- Trial balanceClose & Reconciliation
- Two-way matchClose & Reconciliation
- Three-way matchClose & Reconciliation
- Tool useAI in Finance
W
- WalkthroughAudit, Controls & Evidence
See the terms at work in our free Claude skills for the close, and in the Journal.
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