Nobody hands you a dictionary when you start a business. One day you're just trying to cut grass and make some money… Next thing you know somebody is asking for your COI, W-9, EIN, or asking if you accept NET 30. So here’s the cheat sheet: ROI — Return on Investment Did that mower, trailer, employee, or ad actually make you money? COI — Certificate of Insurance Proof that your business carries insurance. GL — General Liability Business insurance covering certain accidents, injuries, and property damage. WC — Workers’ Compensation Coverage for employees injured on the job. LLC — Limited Liability Company One of the most common business structures contractors use. EIN — Employer Identification Number Basically your business’s federal tax ID. W-9 — Request for Taxpayer Identification Commercial clients may ask you for this before they can pay you. 1099 — Independent Contractor Tax Form Something you'll commonly hear when dealing with subcontractors. W-2 — Employee Tax Form Used for employees on payroll. P&L — Profit & Loss Statement Shows how much money came in, went out, and what you actually made. COGS — Cost of Goods Sold The direct costs of completing your jobs. GP — Gross Profit Revenue minus your direct job costs. NP — Net Profit What you actually have left after ALL expenses. OH — Overhead Insurance, software, advertising, office expenses, truck payments, etc. AR — Accounts Receivable Money customers still owe YOU. AP — Accounts Payable Money YOU still owe somebody else. PO — Purchase Order Something commercial clients may issue before approving work. NET 30 — Payment Due Within 30 Days Very common in commercial work. ACH — Automated Clearing House Electronic bank-to-bank payment. CRM — Customer Relationship Management Software that keeps track of leads, customers, estimates, jobs, follow-ups, etc. SOP — Standard Operating Procedure A written process for how something should be done. KPI — Key Performance Indicator Numbers that tell you how the business is performing.