Glossary

Accrual Accounting

An accounting method in which revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur. Svenry can assist in validating accruals by analyzing related financial records and transactions to ensure compliance with accounting standards.

Accounts Payable (AP)
 

The amounts a company owes to suppliers for goods or services received. AP is a liability on the balance sheet. Svenry’s platform can analyze AP documents, like invoices and purchase orders, to ensure that payments are valid and align with contract terms.

Accounts Receivable (AR)

The amounts a company is entitled to receive from customers for goods or services provided. AR is an asset on the balance sheet. Svenry helps businesses validate AR transactions, ensuring that receivables are legitimate and not linked to fraudulent customers.

AI (Artificial Intelligence)

A field of computer science focused on creating systems that can perform tasks that typically require human intelligence, such as fraud detection, data analysis, and decision-making. Svenry uses AI to analyze and cross-reference business data to identify potential risks and anomalies.

AI-Powered Automation

The use of artificial intelligence to automate tasks that would otherwise require human intervention. In Svenry’s case, AI is used to analyze documents, detect fraud, and ensure compliance without manual checks.

Auditing

The process of reviewing and verifying a company’s financial records and statements to ensure accuracy and compliance with accounting standards and regulations. Svenry's AI-driven platform can assist auditors by flagging potential errors or fraudulent activities in financial documents.

Balance Sheet

A financial statement that provides a snapshot of an organization’s financial position at a specific point in time, listing assets, liabilities, and equity. Svenry assists in verifying the accuracy of balance sheet data by cross-referencing documents and validating the legitimacy of business transactions.

Blacklist

A list of companies, individuals, or entities that are considered high-risk due to fraudulent activities, financial instability, or legal issues. Svenry cross-references business partners with blacklists to flag potential risks.

Cash Flow Statement

A financial statement that shows how changes in the balance sheet and income statement affect cash and cash equivalents. It breaks down the company’s operating, investing, and financing cash flows. Svenry can help ensure that cash flow data aligns with verified financial transactions and external databases.

Chart of Accounts (COA)

A structured list of all accounts used in an organization's financial reporting. It organizes accounts into categories like assets, liabilities, equity, revenue, and expenses. Svenry’s AI can analyze entries in the chart of accounts to detect unusual transactions or fraud.

Compliance

The process of ensuring that a business adheres to relevant laws, regulations, and industry standards. Svenry helps organizations stay compliant by checking business documents against legal requirements and compliance frameworks.

Cost of Goods Sold (COGS)

The direct costs incurred in the production of goods sold by a company, such as raw materials and labor. COGS is subtracted from revenue to calculate gross profit. Svenry can cross-check COGS records with supplier invoices and contracts to ensure they are accurate and not inflated.

Data Privacy

The protection of personal and sensitive information from unauthorized access, use, or disclosure. Svenry adheres to data privacy regulations like GDPR, ensuring that customer and supplier data is handled securely and responsibly.

Data Verification

The process of ensuring the accuracy, integrity, and authenticity of business data. Svenry automates data verification by cross-checking documents with multiple external sources to confirm that all information is valid.

Depreciation

The allocation of the cost of a fixed asset over its useful life. Depreciation affects both the balance sheet and income statement. Svenry’s platform can verify depreciation calculations by checking the associated accounting entries and asset records.

Due Diligence

The process of thoroughly investigating and verifying the background and business operations of potential partners, customers, or suppliers. Svenry automates due diligence by checking critical business data against risk indicators and legal databases.

Financial Accounting

The field of accounting that focuses on tracking, recording, and reporting financial transactions for an organization. It includes the preparation of financial statements such as the balance sheet, income statement, and cash flow statement, which are used by external stakeholders, including investors and regulators.

Financial Reporting

The process of producing financial statements and reports that summarize an organization’s financial status and performance. Svenry supports financial reporting by ensuring data integrity and identifying any discrepancies in accounting records.

Fixed Assets

Long-term tangible assets such as property, plant, and equipment that are used in business operations. Svenry can assist in verifying the authenticity of asset records and ensuring that depreciation is calculated correctly.

Fraud
Detection

The process of identifying and preventing fraudulent activities such as identity theft, fake suppliers, manipulated invoices, and financial fraud. Svenry uses AI to scan documents for red flags and cross-checks them with blacklists, insolvency records, and legal databases.

Fraudulent Financial Reporting

The intentional misrepresentation or omission of financial information to deceive stakeholders, often for personal or organizational gain. Svenry helps detect signs of fraudulent financial reporting by analyzing financial documents for inconsistencies, falsified entries, or irregularities.

General
Ledger (GL)

A complete record of all financial transactions over the life of an organization, grouped by account type. The general ledger forms the basis for the preparation of financial statements. Svenry integrates with financial data systems to cross-check transactional data in the GL for discrepancies or fraud.

Income Statement (Profit &Loss Statement)

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period. This statement provides an overview of the company’s profitability. Svenry aids in identifying discrepancies in income statements by checking financial documents for fraud indicators.

Insolvency Register

A public record listing companies or individuals who have been declared insolvent or bankrupt. Svenry cross-references supplier and customer data with insolvency registers to identify any financial risks associated with business partners.

Internal Controls

The processes and procedures implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations. Svenry supports internal controls by automating document verification, reducing human error, and identifying suspicious activity early on.

KYC (Know Your Customer)

A process used by businesses to verify the identity of their customers, typically to prevent fraud and comply with legal requirements. Svenry’s AI helps businesses perform KYC checks by verifying the authenticity of customer data and flagging potential risks.

Machine Learning

A subset of AI that allows systems to learn and improve over time without being explicitly programmed. Svenry leverages machine learning algorithms to detect patterns in data, improving fraud detection and risk management capabilities.

Reconciliation

The process of comparing and matching financial records to ensure that they are accurate and consistent. Svenry’s AI can automate reconciliations of accounts payable, accounts receivable, and bank statements to identify discrepancies quickly.

Red Flags

Indicators that suggest potential issues or risks, such as fraud or non-compliance. Svenry’s AI scans documents for red flags such as discrepancies in bank account details, missing information, or inconsistencies in business records.

Risk Management

The process of identifying, assessing, and mitigating risks that could harm an organization. Svenry helps businesses reduce the risk of fraud, non-compliance, and other operational threats by automating data verification and cross-referencing external databases.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized in the financial statements. Svenry helps verify that revenue is recognized properly by checking the accuracy of related transactions and contracts.

Tax
Compliance

The process of ensuring that a company complies with tax laws and regulations, including the accurate reporting of income and expenses. Svenry helps businesses ensure tax compliance by validating financial documents and flagging any discrepancies that could result in tax issues.

Supplier Risk Assessment

The process of evaluating the potential risks associated with a supplier, including fraud, financial instability, and compliance issues. Svenry assesses suppliers by analyzing documents and comparing them to risk indicators and databases.

Transaction Verification

The process of ensuring that financial transactions, including payments, invoices, and contracts, are legitimate and match the terms agreed upon by both parties. Svenry automates transaction verification by cross-checking documents with internal and external data sources.