Abbreviations and acronyms found in the business terminology of English everywhere, and sometimes carry the key meaning of the letter, message or article. Some of them, such as HR (Human Resources), or R & D (Research and Development), used so often that they are familiar and understandable to any reader, not even speak English. Others are more specific, but not least rarely used in business.
In this article you will find the abbreviations of the financial, accounting areas, and general abbreviations that are used in the business environment. In addition, here you’ll see decoding of all valid today Incoterms (from the English. International commerce terms, — international law recognized by government agencies, law firms and traders all over the world as the best interpretation of the applicable terms of international trade).
So, we shall understand the frequently encountered acronyms in business communication the British and Americans. The first group will consider the most common abbreviations of business communication:
- ASAP — As soon as possible. As quickly as possible. This abbreviation is most often used when asked to perform something very quickly. For example, to pay the bills.
- B2B — Business to Business. From business to business. It indicates the type of business cooperation between the companies. For example, between the manufacturer and the wholesaler or between wholesalers and retailers.
- B2C — Business to Consumer. From the business to the customer. It indicates the type of business cooperation between the company and the end user. For example, retail trade.
- CAO — Chief Accounting Officer. So the English call the chief accountant of the company.
- CEO — Chief Executive Officer. Chief executive officer. The closest analogue of the post in the Russian language — CEO.
- CFO — Chief Financial Officer. This corresponds to the position of CFO.
- CMO — Chief Marketing Officer. By analogy with the previous abbreviations of this kind, this could be translated as director of marketing.
- CSO — Chief Security Officer. The head of the security service.
- CRM — Customer Relationship Management. Customer relationship management. A system that emphasizes the client’s needs, the needs.
- EXP — Export. Export. Export of goods from the country’s borders.
- GDP — Gross Domestic Product. Gross Domestic Product. Term, well-known, perhaps, and all means the aggregate of all final goods and services produced per year in the state.
- HR — Human Resources. Human Resources Company
- HQ — Head Quarters. General Directorate of the company
- IR — Interest Rate. Interest rate. The amount shown as a percentage of the loan amount paid by the borrower for the use of them.
- LLC — Limited Liability Company. Limited Liability Company. Ltd. corresponds to a reduction in the Russian language.
- NDA — Non-Disclosure Agreement. Non disclosure agreement. This type of agreement is to prevent the leakage of any confidential information from trade secrets to personal data.
- R & D — Research and Development. Research and development. This is probably one of the few cases in which the English abbreviation more commonly used in Russian-speaking countries than its Russian counterpart, which reads as follows: R & D (Research and development work)
- SCM — Supply Chain Management. Supply chain management. These systems are designed to automate and manage all phases of the supply companies and control all product distribution in the enterprise.
Now let’s take a look at Incoterms:
- AWB — Airway Bill. Air Waybill. The document, which prescribes the consignor or his agent, which confirmed the existence of a contract between the shipper and the carrier for the carriage of goods by carrier airlines.
- BL — Bill of Lading. The bill of lading. A document issued by the cargo carrier of the goods. Certifies ownership of the shipped goods.
- CIF — Cost, Insurance, Freight. Cost, insurance and freight. And here is the first of a series of Incoterms in this article. Delivery of goods on CIF means that the price of goods includes the cost of goods, freight and shipping costs, as well as the cost of insurance. This term applies only to maritime transport.
- CIP — Carriage and Insurance Paid To. Carriage and insurance paid to. This term implies that the value of the goods is part of its transportation to the named purchaser of the carrier, as well as its insurance. Unlike the previous one, it applies to all modes of transport.
- C & F — Cost and Freight. Cost and Freight. The third term of the group INKOTREMS different from CIF fact that the value of such goods does not include insurance, and it pays for itself at the request of the buyer further. It applies only to maritime transport.
- CPT — Carriage Paid To. Carriage paid to. The same as the CIP, not only includes cargo insurance. Applicable to all types of supplies.
- DAT — Delivered At Terminal. Delivery of the terminal. The term group of Incoterms means that the goods are delivered by the seller to the specified terminal on the border, while it pays export payments, and the buyer — imported. Used in any shipment.
- DDP — Delivered Duty Paid. Delivered. The fee paid. If the goods are delivered to such conditions, all possible costs of the carriage takes on the seller. For any kind of supply.
- EXW — Ex Works. Ex Works. Another group of terms Incoterms assumes that the seller’s responsibility ends when they transfer the goods at the seller’s premises, and the costs and risks of transporting it takes over the buyer. It is used in all shipments.
- FAS — Free Alongside Ship. Free Alongside Ship. The seller delivers the goods to the named port of origin, and all further costs borne by the buyer. As the name implies, this term is used in maritime transport.
- FCA — Free Carrier. Free Carrier. Sold under such conditions delivers the goods cleared from export duties, the carrier, and all further costs and risks assumes the buyer. It applies to all modes of transport.
- FOB — Free On Board. Free on board. Seller’s liability ends and begins the buyer after the goods have been loaded on board the vessel. Only for sea transport.
And finally, the third group consider the abbreviations and acronyms used in the accounting and financial reporting:
- CAPEX — Capital Expenditure. Capital expenditures. Capital, which is used by companies to acquire or upgrade physical assets (residential and industrial real estate, equipment, technologies).
- COGS — Cost of Goods Sold. Cost of sales. This name can be found in the financial statements, the report on financial results in English.
- EBIT — Earnings Before Interest and Taxes. Operating profit. It is a financial result of all activities before income tax and interest on borrowings.
- EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization. The term financial statements differs from the EBIT that also includes depreciation of tangible and intangible assets.
- EPS — Earnings per Share. Earnings per share. One of the most important indicators of the financial statements, which is the ratio of net income to the average number of ordinary shares.
- FIFO — First In, First Out. «First come, first left.» Good accountants familiar term that suggests that material goods put on the account first, too, the first eliminated.
- GAAP — Generally Accepted Accounting Principles. Generally Accepted Accounting Principles.
- GAAS — Generally Accepted Audit Standards. The generally accepted auditing standards.
- GP — Gross Profit. Gross profit. Is the difference between revenue and cost of goods sold (COGS)
- IPO — Initial Public Offering. Initial public offerings. It implies an offer of shares on sale to the general public.
- LC — Letter of Credit. Letter of Credit. The simplest definition of a letter of credit: a contract between a buyer and a seller with respect to purchasing anything, the feasibility and practicability of which guarantee a third, independent from both parties, the party most often a bank.
- LIFO — Last In, First Out. «The last came the first left.» Another term accounting, implying that the material goods put on record the last drop out first.
- NOPAT — Net Operating Profit After Tax. Net operating profit after taxes.
- NPV — Net Present Value. The net present value. The term used in the analysis of investment projects, is the difference between all cash inflows and outflows, given the current point in time.
- OPEX — Operational Expenditure. Operating expenses.
- P & L — Profit and Loss — Profit and loss account. One of the main forms of financial statements.
- ROA — Return on Assets — Return on assets. This and the following two indicators characterize profitability or, in other words, the efficient use of those or other resources. Expect also to other types of profitability.
- ROE — Return on Equity — Return on equity
- ROI — Return on Investment — ROI. An important indicator for the people who invest money in the business, because it shows the ratio of profit to investment in the project investment.
- ROS — Return on Sales — Return on sales
- WACC — Weighted Average Cost of Capital — WACC. The index, widely used in financial analysis to assess the costs and allows companies to use capital.
In a very simplified form, report income statement is as follows:
- Net sales (revenues from sales)
- COGS (cost)
- GP (Gross Profit) = Net Sales — COGS
- OPEX (operating expenses)
- EBIT (operating profit) = GP — OPEX
- NOPAT (Net profit) = EBIT — Interests (interest on the borrowed funds) — Taxes (tax liability)
- EPS (earnings per share) = NOPAT number of shares (number of shares)
Now, learn the basic business English abbreviations, I hope you will not scare any balances (Balance Sheet), nor any other documents or letters to your business partners.
And for dessert, I would like to offer you some not even a business, but frequently used abbreviations in English, without which modern advanced youth does not think their communication on the Internet:
- 2moro — Tomorrow. Next day
- 2nite — Tonight. Tonight
- BRB — Be Right Back. Be right back
- BTW — By The Way. By the way
- B4N — Bye For Now. And yet, not yet.
- BFF — Best Friends Forever. Best friends forever
- DBEYR — Do not Believe Everything You Read. Do not believe everything you read.
- ILY — I Love You. I love you.
- IMHO — In My Humble Opinion. In my humble opinion.
- IRL — In Real Life. In real life
- ISO — In Search Of. In search
- J / K — Just Kidding. Just kidding
- L8R — Later. Afterward
- LOL — Laughing Out Loud. I laugh out loud.
- NP — No Problem — or — Nosy Parents. No problems or curious parents.
- OMG — Oh My God. Oh my God.
- OT — Off Topic. Off-topic.
- POV — Point Of View. Point of view.
- RBTL — Read Between The Lines. Read between the lines.
- THX or TX or THKS — Thanks. Thank you
- TMI — Too Much Information. Too much information.
- TTYL — Talk To You Later. Let’s talk later.
- TYVM — Thank You Very Much. Many thanks.
- WYWH — Wish You Were Here. I would like you to be (a) here.
- XOXO — Hugs and Kisses. Hugs and kisses.
As can be seen, abbreviations and acronyms are needed in the various fields of communication in English, from business meetings to friendly informal chat sessions. Enrich your English speech!