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....

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What is accounting period?

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

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What is accrual accounting?

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

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What is attendance management?

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

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What is automation in business?

Business automation uses technology to reduce repetitive manual tasks in areas such....

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What are assets?

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

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What is audit?

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

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What is annual report?

An annual report is a document summarising a company’s financial performance, operations....

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What is API integration?

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

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What is approval workflow?

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

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What is automated payroll?

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

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What is applicant tracking system (ATS)?

An Applicant Tracking System (ATS) is recruitment software used to manage job applications, candidate....

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What is advisory in accounting?

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

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What is amortisation?

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

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B

What are the benefits of cloud-based business software

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

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What is budgeting in business?

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

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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...

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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...

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What is bootstrapping?

Bootstrapping means starting and growing a business using personal savings...

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What is break-even point?

The break-even point is where total revenue equals total costs...

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What is bonus payroll processing?

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

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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 instead of local servers...

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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, training, or service activation...

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E

What is e-Invoicing?

e-Invoicing refers to the digital creation, sending, and management of invoices through software systems...

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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, submit claims...

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What is employee database management?

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

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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, MPF contributions...

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What is ERP software?

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

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ERP vs CRM: What’s the difference?

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

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What is expense management?

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

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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 costs...

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What is gross salary?

Gross salary is the total earnings an employee receives before deductions such as taxes and contributions...

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H

What is HR automation?

HR automation uses software to automate HR tasks such as payroll, leave approvals, 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, or Human Resource Management System, is software that combines payroll, attendance, leave, claims...

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HRMS vs Payroll Software

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

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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 inventory management?

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

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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 integrated payroll software?

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

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What is IFRS?

IFRS, or International Financial Reporting Standards, is a global accounting framework...

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L

What is leave management?

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

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What is labour cost management?

Labour cost management involves controlling employee-related expenses such as salaries, overtime...

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What are liabilities?

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

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M

What is marketing automation?

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

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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 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 prevents confidential business 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...

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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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O

What is overtime management?

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

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What is online payroll software?

Online payroll software is a cloud-based system that automates salary calculations, deductions, and payslips...

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What is operational efficiency?

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

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What is operating expense?

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

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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?

An overhead is an indirect business expense that supports operations but is not directly tied to production...

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P

What is payroll accounting?

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

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What is payroll software?

Payroll software automates salary calculations, payslips, MPF contributions, leave calculations...

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What is payroll outsourcing?

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

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What is payroll?

Payroll is the process of calculating employee salaries, MPF contributions, allowances, overtime...

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What are payroll records?

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

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What is payslip?

A payslip is a document showing an employee’s salary breakdown, deductions, allowances, 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 are deducted...

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Q

What is quick ratio?

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

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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 all current assets...

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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 pipeline?

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

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What is self-service HR portal?

A self-service HR portal allows employees to access payslips, apply leave, and submit claims online...

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What is shift scheduling?

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

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What is statutory payroll compliance?

Statutory payroll compliance refers to meeting payroll obligations such as MPF contributions and salary payments...

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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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T

What is talent management?

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

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What is Tax?

Tax in Hong Kong refers to salaries tax, profits tax, property tax, and other taxes...

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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, overtime, and project-related time...

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What are trade creditors?

Trade creditors are suppliers or vendors a business owes money to for goods or services...

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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 the total revenue generated by a business during a specific period...

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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 workforce management?

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

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What is workforce analytics?

Workforce analytics uses employee and operational data to analyse productivity, attendance, 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 using current assets...

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