Human Resource
Glossary for HR Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

What is accounts payable?

Accounts payable refers to money owed to suppliers or vendors for goods and services purchased on credit...

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What is accounts receivable?

Accounts receivable is money owed by customers for products or services purchased on credit...

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What is accounting software?

Accounting software helps businesses manage invoices, expenses, payroll, taxes, and financial reporting digitally...

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What is accounting period?

An accounting period is the timeframe used to prepare financial reports, such as monthly, quarterly, or yearly accounts...

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What is accrual accounting?

Accrual accounting records income and expenses when they are earned or incurred...

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What is attendance management?

Attendance management involves tracking employee working hours, shifts, overtime, and leave...

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What is automation in business?

Business automation uses technology to reduce repetitive manual tasks in accounting, HR, payroll, and operations...

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What are assets?

Assets are resources owned by a business that provide future economic value, such as cash and inventory...

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What is audit?

An audit is an independent review of financial records to ensure accuracy, compliance, and transparency...

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What is annual report?

An annual report is a document summarising a company’s financial performance and achievements...

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What is API integration?

API integration allows different software systems to connect and exchange data automatically...

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What is approval workflow?

An approval workflow is a structured process where requests such as leave, claims, or purchases require authorisation...

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What is automated payroll?

Automated payroll uses software to calculate salaries, deductions, overtime, taxes, and contributions automatically...

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What is applicant tracking system (ATS)?

An Applicant Tracking System (ATS) is recruitment software used to manage job applications and hiring processes...

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What is advisory in accounting?

Advisory in accounting refers to professional financial guidance related to budgeting, taxation, and compliance...

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What is amortisation?

Amortisation is the gradual reduction of the value of intangible assets such as software licences...

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B

Benefits of cloud-based business software

Cloud-based software offers remote access, automatic updates, lower infrastructure costs, and easier scalability...

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What is budgeting in business?

Budgeting is the process of planning expected income and expenses to manage spending and support business goals...

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What is balance sheet?

A balance sheet is a financial statement showing a company’s assets, liabilities, and equity...

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What is bank reconciliation?

Bank reconciliation compares business financial records with bank statements to identify errors...

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What is business accounting?

Business accounting involves recording, organising, and analysing financial transactions...

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What is business automation?

Business automation uses software and digital tools to automate repetitive tasks...

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What is business intelligence (BI)?

Business Intelligence (BI) uses data analysis tools and dashboards to help businesses make informed decisions...

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What is bootstrapping?

Bootstrapping means starting and growing a business using personal savings or internally generated revenue...

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What is break-even point?

The break-even point is where total revenue equals total costs, meaning the business makes neither profit nor loss...

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What is bonus payroll processing?

Bonus payroll processing involves calculating employee bonuses together with taxes and deductions...

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C

What is cash flow management?

Cash flow management is the process of monitoring and controlling money entering and leaving a business...

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What is cash accounting?

Cash accounting records transactions only when money is received or paid...

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What is cash flow?

Cash flow refers to the movement of money into and out of a business...

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What is claims management?

Claims management involves handling employee reimbursement claims such as travel, meals, or medical expenses...

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What is cloud accounting?

Cloud accounting is online accounting software that allows businesses to manage finances...

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What is cloud CRM?

Cloud CRM is customer relationship management software hosted online...

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What is cloud ERP?

Cloud ERP is an online business management system that integrates accounting, HR, payroll, sales, and operations...

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What is contact management?

Contact management is the process of storing and organising customer, supplier, or business contact information...

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What is CRM?

CRM stands for Customer Relationship Management, a system used to manage customer interactions...

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What is customer engagement?

Customer engagement refers to how businesses interact and build relationships with customers...

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What is customer relationship management?

Customer relationship management is the process of managing customer interactions...

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What is customer onboarding?

Customer onboarding is the process of guiding new customers through product setup and activation...

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What is customer support automation?

Customer support automation uses software, chatbots, and workflows to handle inquiries more efficiently...

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What is CRM analytics?

CRM analytics involves analysing customer data, sales trends, and engagement metrics...

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What is capital expenditure (Capex)?

Capital expenditure refers to spending on long-term assets such as machinery, equipment, or software...

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What is chart of accounts?

A chart of accounts is a structured list of financial accounts used for recording transactions...

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What is COGS?

COGS, or Cost of Goods Sold, refers to the direct costs involved in producing or purchasing products...

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What is commercial invoice?

A commercial invoice is a trade document containing product, pricing, shipping, and tax details...

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What are current assets?

Current assets are short-term assets expected to be converted into cash within one year...

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What are current liabilities?

Current liabilities are short-term financial obligations due within one year...

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What is commission tracking?

Commission tracking involves calculating and monitoring employee or sales commissions...

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D

What is deal tracking?

Deal tracking monitors sales opportunities throughout the sales pipeline from inquiry to closing...

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What is digital accounting?

Digital accounting uses cloud software and automation tools to manage financial transactions electronically...

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What is digital payslip?

A digital payslip is an electronic salary slip employees can access online through payroll systems...

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What is digital transformation for SMEs?

Digital transformation refers to using technology to improve business processes and customer experiences...

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What is digital HR?

Digital HR uses technology and software to manage payroll, employee records, recruitment, and performance...

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What is debtor management?

Debtor management involves monitoring customer payments and collecting outstanding invoices...

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What is direct cost?

A direct cost is an expense directly linked to producing goods or delivering services...

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What is dividend?

A dividend is a portion of company profits distributed to shareholders...

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What is dividend yield?

Dividend yield measures the return investors receive from dividends compared to a company’s share price...

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What is document management system?

A document management system stores, organises, and manages digital files securely...

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What is data migration?

Data migration is the process of transferring data from one software system or platform to another...

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E

What is e-Invoicing in Malaysia?

e-Invoicing is a digital invoicing framework introduced by LHDN to standardise invoice reporting...

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What is employee engagement?

Employee engagement measures how connected, motivated, and committed employees feel...

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What is employee onboarding?

Employee onboarding is the process of integrating new hires into a company...

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What is employee self-service (ESS)?

Employee Self-Service (ESS) allows employees to access payslips, apply leave, and update information...

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What is employee database management?

Employee database management involves storing and maintaining employee records digitally...

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What is employee attendance software?

Employee attendance software tracks working hours, shifts, overtime, and attendance automatically...

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What is employee turnover?

Employee turnover refers to the rate employees leave and are replaced within an organisation...

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What is electronic payroll system?

An electronic payroll system automates salary processing, deductions, contributions, and reporting...

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What is ERP software?

ERP software integrates business functions such as accounting, HR, payroll, inventory, CRM, and operations...

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ERP vs CRM: What’s the difference?

ERP manages internal business operations, while CRM focuses on customer relationships and sales...

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What is expense management?

Expense management involves tracking, approving, and controlling business expenses...

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What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation...

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What is earnings per share (EPS)?

EPS measures how much profit a company earns for each outstanding share...

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What is equity in business?

Equity represents the owner’s share in a business after liabilities are deducted from assets...

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What is excise tax?

Excise tax is a tax imposed on specific goods such as tobacco, alcohol, or vehicles...

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F

What is financial forecasting?

Financial forecasting estimates future revenue, expenses, and cash flow based on historical data...

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What is financial reporting software?

Financial reporting software helps generate reports such as profit and loss statements...

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What is financial management?

Financial management involves planning, organising, and controlling business finances...

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What is financial reporting?

Financial reporting is the process of preparing and presenting financial statements...

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What is fixed assets?

Fixed assets are long-term resources such as machinery, buildings, vehicles, and equipment...

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What is fixed cost?

A fixed cost is an expense that remains the same regardless of production or sales volume...

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What is forecasting in business?

Forecasting in business involves predicting future sales, expenses, or operational performance...

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What is fixed asset management?

Fixed asset management involves tracking, maintaining, and monitoring company assets...

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What is financial dashboard software?

Financial dashboard software provides real-time visual insights into revenue, expenses, and cash flow...

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What is free cash flow?

Free cash flow is the money remaining after a business pays operating expenses and capital expenditures...

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G

What is gross profit?

Gross profit is the revenue remaining after deducting the cost of goods sold from total sales...

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What is gross profit margin?

Gross profit margin measures how much profit remains after covering direct production or service costs...

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What is GST vs SST?

GST is a broad-based consumption tax previously implemented in Malaysia, while SST is the current system...

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What is gross salary?

Gross salary is the total salary earned before deductions such as taxes, EPF, SOCSO, and contributions...

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H

What is helpdesk software?

Helpdesk software manages customer support requests, inquiries, and technical issues through ticketing systems...

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What is HR automation?

HR automation uses software to automate HR tasks such as payroll, leave approvals, and attendance tracking...

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What is HR software?

HR software helps manage employee records, payroll, leave, attendance, recruitment, and performance...

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What is HRMS?

HRMS is software that combines payroll, attendance, leave, claims, and employee management...

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HRMS vs payroll software

HRMS covers broader HR functions such as attendance, leave, and employee records...

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What is human capital management (HCM)?

Human Capital Management (HCM) refers to strategies and software used to manage employees...

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What is hybrid workforce management?

Hybrid workforce management involves managing employees who work remotely and in-office...

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I

What is integrated business software?

Integrated business software combines accounting, payroll, CRM, HR, and inventory functions...

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What is integrated ERP system?

An integrated ERP system connects departments such as finance, HR, procurement, sales, and inventory...

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What is inventory management?

Inventory management involves tracking, organising, and controlling stock levels within a business...

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What is inventory turnover?

Inventory turnover measures how quickly inventory is sold and replaced during a specific period...

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What is invoice automation?

Invoice automation uses software to generate, process, send, and track invoices automatically...

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What is invoice matching?

Invoice matching compares invoices with purchase orders and delivery records to verify accuracy...

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What is invoice reconciliation?

Invoice reconciliation involves comparing invoices against financial records to ensure accuracy...

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What is integrated payroll software?

Integrated payroll software connects payroll processing with HR, attendance, leave, and accounting systems...

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What is integrated CRM software?

Integrated CRM software connects customer management with sales, marketing, support, and operations...

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What is invoice tracking?

Invoice tracking monitors invoice status, payments, due dates, and outstanding balances...

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What is IFRS?

IFRS is a global accounting framework used for preparing financial statements...

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What is income tax?

Income tax is a tax imposed on earnings made by individuals and businesses...

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What are indirect costs?

Indirect costs are expenses not directly linked to producing a product or service...

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What is inflation?

Inflation is the gradual increase in prices over time, reducing purchasing power...

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What are intangible assets?

Intangible assets are non-physical assets such as software, trademarks, patents, and goodwill...

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What is implementation cost in ERP?

Implementation cost in ERP refers to expenses related to software setup, training, and customisation...

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What is incentive management?

Incentive management involves planning and managing employee rewards, bonuses, and commissions...

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What is incentive payroll?

Incentive payroll includes bonuses, commissions, allowances, and performance-based payments...

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What is IT asset management?

IT asset management tracks and manages technology assets such as laptops and software licences...

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What is issue tracking software?

Issue tracking software helps monitor, assign, and resolve tasks, technical issues, or support tickets...

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What is internal controls in accounting?

Internal controls in accounting are policies and procedures designed to prevent fraud...

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K

What is KPI tracking?

KPI tracking monitors Key Performance Indicators to measure employee, sales...

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L

What is lead management?

Lead management is the process of capturing, tracking, and nurturing potential customers...

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What is leave management?

Leave management involves tracking and approving employee leave such as annual leave and sick leave...

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What is labour cost management?

Labour cost management involves controlling employee-related expenses such as salaries and benefits...

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What is lead conversion?

Lead conversion refers to turning potential customers into paying customers through sales efforts...

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What is ledger?

A ledger is a financial record that stores business transactions organised by account category...

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What are liabilities?

Liabilities are debts or financial obligations owed by a business such as loans and taxes...

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What is liquidity?

Liquidity measures how easily a business can convert assets into cash to meet obligations...

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What is liquidation?

Liquidation is the process of closing a business and selling its assets to repay creditors...

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M

What is marketing automation?

Marketing automation uses software to automate campaigns, customer segmentation, and lead nurturing...

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What is multi-currency accounting?

Multi-currency accounting allows businesses to record and manage transactions in multiple currencies...

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What is manpower planning?

Manpower planning involves forecasting workforce requirements based on business goals...

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What is mobile CRM?

Mobile CRM is customer relationship management software accessible through smartphones and tablets...

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What is multi-branch accounting?

Multi-branch accounting allows businesses with multiple locations to manage financial records...

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What is marginal cost?

Marginal cost is the additional cost of producing one extra unit of a product or service...

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What is markup?

Markup is the amount added to a product’s cost price to determine its selling price...

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N

What is NDA?

An NDA, or Non-Disclosure Agreement, is a legal contract that protects confidential information...

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What is net profit?

Net profit is the amount remaining after deducting all expenses, taxes, and operating costs...

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What is net profit margin?

Net profit margin measures how much profit a business keeps from its revenue after expenses...

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What is net income?

Net income is the final earnings remaining after deducting all business expenses and taxes...

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What are non-current assets?

Non-current assets are long-term assets expected to provide value beyond one year...

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What are non-current liabilities?

Non-current liabilities are long-term financial obligations due after one year...

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O

What is offboarding?

Offboarding is the process of managing an employee’s exit from a company, including final payroll...

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What is omnichannel communication?

Omnichannel communication refers to interacting with customers across multiple channels...

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What is overtime management?

Overtime management involves tracking, approving, and calculating employee overtime hours...

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What is online payroll software?

Online payroll software is a cloud-based system that automates salary calculations and reporting...

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What is order management?

Order management is the process of tracking customer orders from purchase to delivery...

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What is operational efficiency?

Operational efficiency measures how effectively a business uses resources and processes...

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What is operating expense?

An operating expense is a cost incurred during daily business operations such as rent and salaries...

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What is operating profit?

Operating profit is the profit generated from core business activities before taxes and interest...

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What is overhead?

Overhead is an indirect business expense that supports operations but is not tied to production...

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P

What is payroll accounting?

Payroll accounting is the process of recording salaries, deductions, bonuses, taxes, and contributions...

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What is payroll software?

Payroll software automates salary calculations, payslips, tax deductions, and statutory contributions...

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What is payroll outsourcing?

Payroll outsourcing involves hiring an external provider to manage payroll processing and compliance...

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What is performance management?

Performance management is the process of evaluating employee performance through goals and reviews...

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What is performance appraisal software?

Performance appraisal software helps manage employee evaluations, KPI tracking, and reviews...

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What is procurement management?

Procurement management involves sourcing, purchasing, and managing goods and services...

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What is process automation?

Process automation uses software and technology to automate repetitive business tasks...

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What is predictive analytics in CRM?

Predictive analytics in CRM uses customer data to forecast behaviour and sales opportunities...

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What is project accounting?

Project accounting tracks revenue, costs, budgets, and profitability for individual projects...

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What is purchase order management?

Purchase order management involves creating, approving, tracking, and managing purchase orders...

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What is payroll?

Payroll is the process of calculating and paying employee salaries, bonuses, and deductions...

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What are payroll records?

Payroll records are documents containing salary details, deductions, and tax information...

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What is payslip?

A payslip is a document showing an employee’s salary breakdown, deductions, and net pay...

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What is petty cash?

Petty cash is a small amount of money kept for minor day-to-day business expenses...

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What is profitability?

Profitability measures a business’s ability to generate profit from its operations over time...

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What is profit margin?

Profit margin measures how much profit a business earns from its revenue after expenses...

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What is passive income?

Passive income refers to earnings generated with minimal ongoing effort such as dividends...

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What is pro forma financial statement?

A pro forma financial statement is a projected financial report based on estimated performance...

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What is purchase price allocation (PPA)?

Purchase Price Allocation (PPA) is the process of assigning the purchase price of an acquired business...

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Q

What is quick ratio?

The quick ratio measures a business’s ability to pay short-term liabilities...

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Difference between quick ratio and current ratio

The quick ratio excludes inventory and focuses only on liquid assets, while the current ratio includes...

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R

What is remote workforce management?

Remote workforce management involves managing employees working outside the office using digital tools...

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What is real-time reporting?

Real-time reporting provides instant access to updated business and financial data...

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What is recurring billing?

Recurring billing is an automated payment system that charges customers regularly...

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What is revenue recognition?

Revenue recognition is the accounting process of recording revenue when it is earned...

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What are retained earnings?

Retained earnings are profits kept within a business instead of being distributed...

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What is ROI for small businesses?

ROI, or Return on Investment, measures how much profit is generated from an investment...

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S

What is SaaS software?

SaaS, or Software as a Service, is cloud-based software accessed through the internet...

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What is sales automation?

Sales automation uses software to automate repetitive sales tasks such as follow-ups and reminders...

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What is sales forecasting?

Sales forecasting is the process of estimating future sales revenue based on historical data...

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What is sales pipeline?

A sales pipeline is a visual overview of potential deals as they move through different stages...

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What is sales tracking?

Sales tracking involves monitoring sales activities, customer interactions, revenue, and performance...

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What is self-service HR portal?

A self-service HR portal allows employees to access payslips, apply leave, and update details...

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What is shift scheduling?

Shift scheduling is the process of assigning employees to work shifts based on business needs...

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What is SOCSO?

SOCSO is a statutory protection scheme that provides coverage for workplace injuries and risks...

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What is SST in Malaysia?

SST is Malaysia’s indirect tax system consisting of sales tax and service tax...

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What is statutory payroll compliance?

Statutory payroll compliance refers to meeting legal payroll obligations and deductions...

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What is stock management?

Stock management is the process of tracking, organising, and controlling inventory levels...

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What is sole proprietorship?

A sole proprietorship is a business owned and operated by one individual...

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What is staff scheduling?

Staff scheduling involves planning employee work hours, shifts, and task assignments...

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What is subscription billing software?

Subscription billing software automates recurring invoices, payments, and subscriptions...

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T

What is talent management?

Talent management refers to the process of attracting, developing, retaining, and managing employees...

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What is talent acquisition?

Talent acquisition is the process of identifying, attracting, and hiring qualified candidates...

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What is tax planning for SMEs?

Tax planning involves organising finances and business expenses strategically to reduce tax liabilities...

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What is tax deduction?

A tax deduction is an allowable expense that reduces taxable income...

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What is timesheet management?

Timesheet management involves recording and monitoring employee working hours and overtime...

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What is time tracking software?

Time tracking software records employee working hours, attendance, productivity, and project time...

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What are trade creditors?

Trade creditors are suppliers or vendors a business owes money to for purchases on credit...

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What are trade debtors?

Trade debtors are customers who owe payment for products or services purchased on credit...

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What is turnover?

Turnover usually refers to total revenue generated by a business during a specific period...

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What does TTM mean?

TTM, or Trailing Twelve Months, is a financial measurement based on the most recent year...

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What is tax compliance software?

Tax compliance software helps automate tax calculations, reporting, and regulatory submissions...

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U

What is unified business software?

Unified business software combines functions such as accounting, payroll, CRM, HRMS...

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What is user access control?

User access control is a security feature that restricts system access based on roles...

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V

What is vendor management?

Vendor management involves managing supplier relationships, contracts, performance, and communication...

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What is vendor payment management?

Vendor payment management refers to tracking and processing supplier payments accurately...

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What is variable cost?

A variable cost is an expense that changes depending on production or sales volume...

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What is VAT vs SST?

VAT is a multi-stage consumption tax used in many countries, while SST is Malaysia’s tax system...

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W

What is workflow automation?

Workflow automation uses software to automate repetitive tasks and approval processes...

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What is workflow approval system?

A workflow approval system automates approval processes for requests such as leave and claims...

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What is workforce management?

Workforce management involves managing employee scheduling, attendance, payroll, and productivity...

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What is workforce analytics?

Workforce analytics uses employee and operational data to analyse productivity and staffing trends...

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What is working capital ratio?

The working capital ratio measures a company’s ability to pay short-term liabilities...

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Y

Why SMEs are adopting cloud software

Cloud software offers lower upfront costs, remote accessibility, automatic updates, and scalability...

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Why SMEs need integrated business software

Integrated business software connects accounting, payroll, HRMS, CRM, and operations into one platform...

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