Know your Terminology: Words convey your understanding

Modified on Thu, Feb 19 at 5:42 AM

This table can be used as a quick reference guide for partner salespersons, helping them understand key terminologies across sectors and effectively communicate with clients from different backgrounds.

Term	For Profit	Non-Profit	Government
Name	Company or Business	Organization	Organization
Financial Position	Balance Sheet	Statement of Financial Position	Statement of Net Assets
Activities Summary	Income Statement	Statement of Activities	Statement of Activities
Result of Operations	Profit / Loss	Change in Net Assets	Surplus / Deficit
Accumulated Results	Retained Earnings	Net Assets	Net Assets
Web Domain Extension	.com	.org	.gov, .edu
Accounting Principles	Debit / Credit	Debit / Credit	Debit / Credit
Funding Source	Investors, Sales	Grants, Donations, Services	Taxes, Grants, Services
Use of Funds	Cost of Goods Sold, Operating Expenses	Program Expenses, Fundraising, Administration	Public Services, Infrastructure, Administration
Asset Ownership	Company	Organization	Public
Revenue Recognition	Delivery of goods/services, contract fulfillment	Fulfillment of grant conditions, Donation received	Collection of taxes, Provision of services
Budgeting	Based on sales forecasts, cost controls	Based on grant/donation expectations, mission goals	Based on tax revenue, legislative appropriations
Regulatory Compliance	Generally Accepted Accounting Principles (GAAP), SEC regulations	GAAP, IRS Form 990, Uniform Guidance	Government Accounting Standards Board (GASB) regulations, Public Budgeting Systems
Performance Metrics	Net Income, Gross Margin, EBITDA	Program Effectiveness, Cost per Outcome, Fundraising Efficiency	Service effectiveness, Cost per Capita, Budget Compliance