Business abbreviations
In today's fast-paced business environment, efficiency isn't just valued — it's expected. One subtle but effective way for professionals to optimise communication is through the use of abbreviations. These concise expressions save time and space while conveying complex ideas with remarkable accuracy.
Business abbreviations by categories:
1. Marketing and Sales
CAC - Customer Acquisition Cost: The total cost of acquiring a new customer, including marketing and sales expenses.
CLV (or LTV) - Customer Lifetime Value: The total predicted revenue a customer will generate over their entire relationship with a company.
ROI - Return on Investment: A measure of the profitability of an investment, calculated as cost.
MQL - Marketing Qualified Lead: A lead deemed more likely to become a customer based on their engagement with marketing efforts.
SQL - Sales Qualified Lead: A lead that has been vetted by marketing and is considered ready for direct sales contact.
CRM - Customer Relationship Management: Software and strategies for managing a company's interactions with current and potential customers.
CTA - Call to Action: A prompt designed to elicit an immediate response, like "Buy Now" or "Sign Up."
CTR - Click-Through Rate: The percentage of people who click on a link out of the total who see it.
CPC - Cost Per Click: The amount an advertiser pays each time someone clicks on their online ad.
CPM - Cost Per Mille: The cost an advertiser pays for one thousand impressions (views) of their ad.
SOV - Share of Voice: A brand's portion of total advertising in its category, or its share of online conversations.
SERP - Search Engine Results Page: The page displayed by a search engine in response to a user's query.
KPI - Key Performance Indicator: A measurable value that demonstrates how effectively a company is achieving key business objectives.
B2B - Business-to-Business: Commercial transactions between businesses, rather than between a business and individual consumers.
B2C - Business-to-Consumer: The process of selling products and services directly to individual consumers.
SLA - Service Level Agreement: A contract defining the level of service expected, such as sales response times.
RFQ/RFP - Request for Quote / Proposal: Documents issued to solicit formal price quotes or detailed project proposals from vendors.
ABM - Account-Based Marketing: A focused strategy targeting specific high-value accounts with personalised campaigns.
POS - Point of Sale: The time and place where a retail transaction is completed.
VOC - Voice of the Customer: The process of capturing customers' expectations, preferences, and feedback.
2. Digital and Technology
API - Application Programming Interface: A set of rules that allows different software applications to communicate with each other.
SaaS - Software as a Service: A software distribution model where applications are hosted by a provider and accessed over the internet.
UI - User Interface: The visual and interactive elements of a software application or website that a user interacts with.
UX - User Experience: The overall experience a person has when interacting with a product, focusing on ease of use and satisfaction.
ERP - Enterprise Resource Planning: Integrated software for managing core business processes like finance, HR, and supply chain.
CMS - Content Management System: Software used to create, manage, and modify digital content (e.g., WordPress).
ISP - Internet Service Provider: A company that provides internet access to individuals and organisations.
IoT - Internet of Things: The network of physical objects ("things") embedded with sensors and software to connect and exchange data.
AI - Artificial Intelligence: The simulation of human intelligence processes by machines, especially computer systems.
ML - Machine Learning: A subset of AI that enables systems to learn and improve from experience without explicit programming.
RPA - Robotic Process Automation: Using software "robots" to automate repetitive, rule-based digital tasks.
VPN - Virtual Private Network: A service that creates a secure, encrypted connection over a less secure network, like the internet.
SEO - Search Engine Optimisation: Improves organic website traffic.
SEM - Search Engine Marketing: Uses paid ads to appear in search results.
CDN - Content Delivery Network: A network of servers that delivers web content quickly based on a user's geographic location.
SSO - Single Sign-On: An authentication service allowing a user to log in to multiple applications with one set of credentials.
BI - Business Intelligence: Technologies and strategies for analysing business data to provide actionable insights.
DR - Disaster Recovery: Policies and procedures to recover and protect IT infrastructure after a natural or human-induced disaster.
3. Management and Organisational
CEO - Chief Executive Officer: The highest-ranking executive, responsible for overall strategy and operations.
CFO - Chief Financial Officer: The executive responsible for managing the company's financial actions.
COO - Chief Operating Officer: The executive overseeing day-to-day administrative and operational functions.
HR - Human Resources: The department responsible for recruiting, managing, and supporting personnel.
RACI - Responsible, Accountable, Consulted, Informed: A matrix clarifying roles and responsibilities for tasks or deliverables.
OKR - Objectives and Key Results: A goal-setting framework for defining and tracking objectives and their outcomes.
P&L - Profit and Loss: A financial statement summarising revenues, costs, and expenses during a specific period.
SOP - Standard Operating Procedure: A set of step-by-step instructions for carrying out routine operations.
LOB - Line of Business: A distinct product or service unit within a corporation.
FTE - Full-Time Equivalent: A unit indicating the workload of an employee, used to standardise part-time and full-time staff.
IPO - Initial Public Offering: The first time a company offers its stock to the public on a securities exchange.
M&A - Mergers and Acquisitions: The consolidation of companies or assets through various types of financial transactions.
CSR - Corporate Social Responsibility: A business model where companies integrate social and environmental concerns.
BOD - Board of Directors: A group of elected individuals representing shareholders to oversee company activities.
PO - Purchase Order: A commercial document issued by a buyer to a seller, formalising a purchase transaction.
VUCA - Volatile, Uncertain, Complex, Ambiguous: A framework describing challenging, unpredictable business environments.
OPS - Operations: The department responsible for the core activities of producing and delivering goods/services.
PMO - Project Management Office: A department that defines and maintains standards for project management within an organisation.
4. Financial
BS - Balance Sheet: A financial statement showing a company's assets, liabilities, and shareholders' equity at a point in time.
CF - Cash Flow Statement: A report showing how much cash a company generated and used during a period.
EBITDA - Earnings Before Interest, Taxes, Depreciation, & Amortization: A measure of a company's overall operational profitability.
ROA - Return on Assets: An indicator of how profitable a company is relative to its total assets.
ROE - Return on Equity: A measure of financial performance calculated by dividing net income by shareholders' equity.
COGS - Cost of Goods Sold: The direct costs attributable to the production of goods sold by a company.
OPEX - Operating Expenses: The ongoing costs for running a business, product, or system (e.g., rent, utilities, salaries).
CAPEX - Capital Expenditures: Funds used by a company to acquire, upgrade, and maintain physical assets.
GM - Gross Margin: Net sales minus the cost of goods sold, representing the profit a company makes after direct costs.
NM - Net Margin: The percentage of revenue remaining after all operating expenses, interest, and taxes have been deducted.
AR - Accounts Receivable: Money owed to a company by its debtors for goods/services delivered but not yet paid for.
AP - Accounts Payable: Money a company owes to its creditors for goods/services purchased on credit.
FIFO/LIFO - First-In-First-Out / Last-In-First-Out: Accounting methods for valuing inventory and cost of goods sold.
GAAP - Generally Accepted Accounting Principles: A common set of accounting rules, standards, and procedures in the US.
IFRS - International Financial Reporting Standards: A global set of accounting standards.
VAT - Value Added Tax: A consumption tax levied on a product at each stage of production, based on the value added.
YoY - Year over Year: A comparison of performance in one period (e.g., a quarter) against the same period the previous year.
QoQ - Quarter over Quarter: A comparison of performance in one quarter against the previous quarter.
5. Banking
APR - Annual Percentage Rate: The annual rate charged for borrowing, representing the actual yearly cost of funds over a loan's term.
APY - Annual Percentage Yield: The real rate of return earned on a savings deposit, taking compound interest into account.
KYC - Know Your Customer: Regulations requiring banks to verify the identity, suitability, and risks of their clients.
AML - Anti-Money Laundering: Laws and procedures to prevent generating income through illegal acts and disguising its origins.
CD - Certificate of Deposit: A savings product with a fixed interest rate and maturity date, typically offering higher interest.
ACH - Automated Clearing House: An electronic network for financial transactions like direct deposits and bill payments in the US.
SWIFT - Society for Worldwide Interbank Financial Telecommunication: A network that enables financial institutions to send secure messages and payment orders.
IBAN - International Bank Account Number: A standardised international code for identifying bank accounts across borders.
BIC/SWIFT Code - Bank Identifier Code: A unique code identifying a specific bank for international transactions.
FDIC - Federal Deposit Insurance Corporation: A US government agency that insures deposits in banks and thrift institutions.
CBE - Central Bank of Egypt: The central bank and monetary authority of Egypt.
CBDC - Central Bank Digital Currency: A digital form of a country's fiat currency issued by the central bank.
LTV - Loan-to-Value: A financial ratio used by lenders to assess the risk of a mortgage, comparing loan size to property value.
NPL - Non-Performing Loan: A loan where the borrower is in default and hasn't made scheduled payments for a specified period.
SME - Small and Medium-sized Enterprises: A classification of businesses by number of employees, assets, or revenue.
PFM - Personal Financial Management: Tools and services (often in banking apps) to help individuals manage their money.
RTGS - Real-Time Gross Settlement: A funds transfer system where money moves between banks in real-time and individually.
DDA - Demand Deposit Account: A bank account from which funds can be withdrawn at any time without notice (e.g., checking account).
EFT - Electronic Funds Transfer: The electronic transfer of money from one bank account to another.
6. Project management
PM - Project Manager / Project Management: The person or discipline of initiating, planning, executing, and closing projects.
WBS - Work Breakdown Structure: A hierarchical decomposition of the total scope of work to be carried out by the project team.
SOW - Statement of Work: A formal document defining the entire scope of a project, its deliverables, timelines, and milestones.
MVP - Minimum Viable Product: A product with just enough features to satisfy early customers and provide feedback for future development.
BAC - Budget at Completion: The total planned budget for the project.
EAC - Estimate at Completion: The forecasted total cost of the project at completion, based on current performance.
ETC - Estimate to Complete: The expected cost to finish all remaining project work.
RAID - Risks, Assumptions, Issues, Dependencies: A log for tracking key project elements that can impact success.
CR - Change Request: A formal proposal to modify a project's scope, schedule, or costs.
UAT - User Acceptance Testing: The final testing phase where end-users verify the system works for them in real-world scenarios.
POC - Proof of Concept: A small exercise to test the feasibility of an idea or method.
AGILE/SCRUM - Project management methodologies: Agile is iterative; Scrum is a specific Agile framework with roles and time-boxed sprints.
PMBOK - Project Management Body of Knowledge: A set of standard terminology and guidelines for project management.
7. Healthcare
EMR/EHR - Electronic Medical/Health Record: Digital versions of a patient's paper chart, with EHR being a more comprehensive health history.
PHI - Protected Health Information: Any individually identifiable health information protected under HIPAA.
HMO - Health Maintenance Organisation: A type of health insurance plan that usually limits coverage to care from doctors within its network.
PPO - Preferred Provider Organisation: A health plan that allows patients to choose providers inside or outside a network, often at higher cost.
CMS - Centers for Medicare & Medicaid Services: The US federal agency that administers major healthcare programs.
FDA - Food and Drug Administration: A US federal agency responsible for protecting public health by ensuring safety of drugs, food, etc.
ICU - Intensive Care Unit: A specialised hospital department providing intensive treatment and monitoring for critically ill patients.
GP - General Practitioner: A doctor who provides primary care and treats acute/chronic illnesses.
OT - Occupational Therapy/Therapist: Therapy to help patients develop, recover, or maintain daily living and work skills.
PT - Physical Therapy/Therapist: Therapy to restore movement and function, and manage pain.
RX - Prescription: A formal direction for the preparation and use of a medicine or treatment.
Dx - Diagnosis: The identification of the nature and cause of a health condition.
Tx - Treatment: Medical care given to a patient for an illness or injury.
HCAHPS - Hospital Consumer Assessment of Healthcare Providers and Systems: A standardised survey measuring patient perspectives of hospital care.
ACO - Accountable Care Organisation: A network of doctors and hospitals that shares responsibility for providing coordinated care to patients.
WHO - World Health Organisation: A specialised UN agency responsible for international public health.
CDC - Centers for Disease Control and Prevention: The US national public health agency.
CPT - Current Procedural Terminology: A medical code set used to report medical, surgical, and diagnostic procedures.
ICD-10 - International Classification of Diseases, 10th Revision: A global system of codes for classifying diseases and health problems.
8. Legal and Compliance
NDA - Non-Disclosure Agreement: A legal contract creating a confidential relationship to protect non-public information.
MSA - Master Service Agreement: A contract establishing the general terms for future transactions or agreements between parties.
IP - Intellectual Property: Creations of the mind (inventions, artistic works, symbols) protected by law (patents, copyrights, trademarks).
T&C - Terms and Conditions: The rules and guidelines users must agree to to use a service or product.
EULA - End User License Agreement: A legal contract between a software developer and the user, governing software use.
DPA - Data Processing Addendum: A legal agreement for processing personal data in compliance with privacy laws like GDPR (General Data Protection Regulation).
GDPR - General Data Protection Regulation: A comprehensive EU law on data protection and privacy.
CCPA - California Consumer Privacy Act: A state statute enhancing privacy rights for California residents.
SOX - Sarbanes-Oxley Act: A US law mandating strict reforms to improve financial disclosures and prevent accounting fraud.
FCPA - Foreign Corrupt Practices Act: A US law prohibiting bribery of foreign officials to obtain or retain business.
CoC - Code of Conduct: A set of rules outlining the norms, responsibilities, and proper practices for an organisation.
LLC - Limited Liability Company: A business structure that protects owners from personal liability for business debts.
Inc. - Incorporated: Denotes a business that is a legally registered corporation.
Ltd. - Limited: Indicates a company where shareholders' liability is limited to their investment.
POA - Power of Attorney: A legal document authorising one person to act on behalf of another.
LoI - Letter of Intent: A document outlining the preliminary understanding between parties planning a business deal.