A Comprehensive Guide to Common Business Abbreviations

03 December 2024
HCM

Let’s face it—business lingo can sometimes feel like an entirely different language. While terms like SEO and B2B might become second nature in your day-to-day work, they can quickly become overwhelming when sharing across departments. Despite the challenge, clear and effective communication is essential for ensuring everyone stays on the same page.

We’re here to make it simple for you, breaking down some of the most common business abbreviations into easy to understand terms. Keep this cheat sheet handy!

 

Abbreviation Meaning Description
2FA 2 factor authorisation A security process requiring two forms of identification, typically password and a code or device.
ACC/ACCT Account Refers to the bank or contact account.
API Application program interface A tool that allows different software applications to communicate and share data with each other.
AP Accounts Payable The money a company owes to its suppliers or vendors.
AR Accounts Receivable The money a company is owed by its customers.
ASAP As soon as possible To be completed at the soonest time possible
B2B Business to business Transactions/sales to businesses, such as wholesalers and retailers, or manufacturers and suppliers.
B2C Business to customer Transactions/sales direct to customers.
BID Break it down To break down a project or task into steps or components
BOM Bill of materials The 'recipe' or list of components required for an assembly.
BRB Be right back Suggests the user is away for a short time.
COB Close of business End of the business day.
COGS Cost of goods sold the direct costs of producing goods or services sold by a business, including materials and labour.
CPA Certified public accountant  A professional designation for qualified accountants who provide financial expertise in areas like auditing, tax, and financial planning.
CPU Cost per Unit Cost price for one unit of product.
CRM Customer relationship management Refers to software solutions that help companies manage and enhance their interactions with customers.
CTA Call to action A prompt encouraging users to take a specific desired action, such as "Sign up now" or "Learn more."
CTR Click through rate Measures the percentage of people who click on a link or ad compared to the number of people who see it, indicating its effectiveness.
DM/PM Direct/personal message To message the individual directly, not including others already in the thread.
EOD/EOM/EOW/EOY End of - Day/Month/Week/Year Refers to a specific timeframe.
ETA Estimated time of arrival Commonly used to indicate when someone or something is expected to reach a specific destination.
FIFO First in, first out Products should be used or sold in the order that they were recevied from the supplier.
FTE Full time equivalent A unit that measures the workload of an employee, representing the hours worked by one full-time worker.
HR Human resources The person or team responsible for managing employee-related functions, including recruitment, training, payroll and workplace policies.
IAM In a meeting The person is not currently avaiable as they are in a meeting.
IMO In my opinion Informal communications may use this to express personal views or perspectives.
KPI Key performance indicators Measurable metrics used to evaluate progress toward specific business objectives.
L&D Learning and development Upskilling of your team.
LMK Let me know A request to keep the person updated.
LWOP Leave without pay Leave that is not paid.
MoM Month over month A measure used to compare data or performance changes between consecutive months.
MTD Month to date The period starting from the first day of the current month up to the current date.
NRN No reply neccesary No response is expected.
NWR Not work related Indicating content unrelated to professional matters.
OOO Out of office  Indicating someone is unavailable for work-related communication, typically due to leave or travel.
OTP On the phone/over the phone The user is on the phone and cannot respond immediately, or this may refer to a discussion that took or will take place over the phone.
P&L Profit and loss A statement that summarises a business's revenues, costs, and expenses over a specific period.
P-card Purchase card A company-issued credit card used to streamline and manage small or routine business purchases.
PM Project manager The individual overseeing planning, execution, and completion of projects, ensuring goals are met on time and within budget
POC Point of contact Designated person or team responsible for communication and coordination between parties.
POD Proof of delivery A document signed to confirm good have been delievered.
PPC Pay per click A digital advertising model where advertisers pay a fee each time their ad is clicked.
PR Public relations Involves managing a company's communication and image to build positive relationships with the public and stakeholders.
PTO Paid time off Refers to paid sick days, vacation days, and personal days.
QA Quality assurance The process of ensuring that products or services meet specified standards of quality.
RE Regarding Communications refer to the topic indicated
ROI Return on investment Measures the profitability of an investment by comparing the gain or loss relative to its cost.
SaaS Software as a service A cloud-based software delivery model where users access applications via the internet on a subscription basis.
SEO Search engine optimisation Optimising a website to improve its visibility and ranking on search engine results pages.
SMART Specific, measurable, achievable, relevant, time A goal-setting framework ensuring objectives are trackable.
SOH Stock on hand The quantity and value of inventory currently available in stock.
SME (option 1) Small to medium enterprise Refers to the business size.
SME (option 2) Subject matter expert Depending on context this may also refer to a person knowledgeable on the topic. 
SWOT Strengths, weaknesses, opportunities and threats A strategic analysis tool used to identify a business's position.
TLDR Too long didn't read A concise summary of lengthy content, highlighting key points for quick understanding.
UX User experience Design and optimisation of a user's interaction with a product or service.
 WOM Word of mouth The organic sharing of information or recommendations about a product, service, or brand between people, often influencing decisions.
     
If you’re ready to feel confident navigating your business software, we’d love to hear from you. Reach out to us today and discover how our friendly, knowledgeable team can support you on your path to success.
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