The language of modern finance

Campfire's proprietary AI model trained specifically on accounting data. It automatically categorizes transactions, reconciles bank accounts, and learns vendor and account patterns over time — running continuously in the background so books stay close-ready throughout the month, not just at period-end.

An expense or revenue that has been incurred or earned but not yet recorded. Accruals align financial statements with the period in which activity actually occurred — a core requirement of accrual-basis accounting and a common source of month-end manual work that Campfire's Ember AI can identify automatically.

The annualized value of subscription or recurring contract revenue. ARR is the primary top-line metric for SaaS companies and drives board reporting, valuation multiples, and capacity planning. Campfire tracks ARR natively and Ember AI can generate ARR waterfall analysis on demand.

A period-over-period breakdown of ARR movements — new business, expansion, contraction, and churn — that explains why ARR went up or down. Campfire's Ember AI generates ARR waterfall reports automatically from your financials without manual spreadsheet work.

The US GAAP standard requiring revenue to be recognized when (or as) performance obligations are satisfied, regardless of when cash is received. Campfire is fully ASC 606 compliant, with automated revenue schedules, contract-level audit trails, and deferred revenue tracking built in from day one.

A complete, timestamped record of every change made to a financial record — who made it, when, and why. Campfire maintains audit trails on every AI-generated journal entry, including the original prompt, source data, and reasoning chain so auditors and controllers can trust and verify AI work.

A snapshot of a company's assets, liabilities, and equity at a specific point in time. The equation Assets = Liabilities + Equity must always hold. The general ledger is the source of truth that populates the balance sheet, and Campfire surfaces it in real time.

The process of matching transactions in the general ledger against bank statement records to ensure they agree. Campfire automates continuous bank reconciliation so discrepancies surface throughout the month rather than creating a backlog at month-end.

The structure under which a company charges customers — subscription, usage-based, tiered, milestone-based, or hybrid combinations. Campfire handles complex billing models natively, recognizing revenue correctly regardless of how the sales team structures deals or how often pricing changes.

The master list of all account names and numbers used to classify financial transactions in the general ledger. A well-structured COA is foundational for accurate reporting, meaningful drill-down, and clean multi-entity consolidation.

A built-in task list in Campfire that guides finance teams through every step of the monthly close. It replaces standalone close-management tools like FloQast, tracks completion status, and ensures nothing is missed before books are locked.

Campfire's approach to keeping books always close-ready by running reconciliation and categorization throughout the month rather than in a single month-end sprint. Customers typically close 3–10 days faster as a result, and are always prepared for audits or board requests.

Revenue minus variable costs, expressed per customer, product, or segment. It shows how much each unit contributes to covering fixed costs and generating profit. Campfire supports P&L reporting by department and contribution margin by customer natively.

Cash received from customers for services or products not yet delivered. It appears as a liability on the balance sheet until the performance obligation is fulfilled. Deferred revenue tracking is built into Campfire's revenue automation and updated automatically as obligations are satisfied.

Autonomous AI teammates within Campfire that perform accounting tasks — transaction matching, AP/AR processing, accrual identification, and flux analysis — and surface results for human review and approval. Ember Agents execute the work; your team reviews it, enabling a 5× faster close.

Campfire's conversational AI interface that lets finance teams query financial data in plain English, generate flux commentary, draft journal entries, run variance analysis, and identify missing accruals. Ember is purpose-built for accounting — not a general-purpose AI wrapped around a ledger.

A category of business software that integrates core operational processes — accounting, revenue, reporting, payroll, and more — into a single system of record. Campfire is an AI-native ERP built specifically for high-growth software companies as a modern replacement for legacy systems like NetSuite and QuickBooks.

A period-over-period comparison of account balances that identifies and explains variances. Controllers use flux analysis to understand what drove changes in revenue, expenses, and balance sheet accounts. Campfire's Ember AI drafts flux commentary automatically with specific vendor and customer detail.

The central financial record that tracks every transaction across the organization — revenue, expenses, assets, and liabilities. It is the source of truth that powers the income statement, balance sheet, and cash flow statement. Campfire's GL supports multi-entity consolidation, multi-currency, and high transaction volumes natively.

The international equivalent of ASC 606, governing revenue recognition for companies reporting under International Financial Reporting Standards. Like ASC 606, it requires revenue to be recognized as performance obligations are satisfied. Campfire supports both standards for global operations.

The removal of transactions between entities within the same corporate group before producing consolidated financial statements, to avoid double-counting. Campfire performs intercompany eliminations automatically across all entities so consolidated financials are always accurate and current.

The fundamental recording unit in double-entry bookkeeping — a debit to one account and a credit to another. Campfire's Accounting Intelligence automates routine journal entries and Ember AI can draft complex entries with full audit trails and source data attached.

The predictable, normalized monthly revenue from active subscriptions. MRR is the building block of ARR and the lens through which SaaS companies track growth, churn, and expansion on a monthly basis.

The ability to record, report, and consolidate financials across multiple currencies with proper FX translation. Campfire handles multi-currency natively — foreign exchange management, realized and unrealized gains/losses, and consolidated reporting in a single reporting currency.

A corporate structure where a parent company owns or operates multiple legal entities, subsidiaries, or business units. Campfire supports unlimited entities with real-time consolidation, intercompany eliminations, and granular permissioning — no logging in and out of separate instances.

The percentage of recurring revenue retained from an existing customer cohort over a period, including expansion, contraction, and churn. NRR above 100% means the existing customer base is growing even without new logos, and is a key indicator of product-market fit and efficient growth.

Under ASC 606 and IFRS 15, a promise in a contract to deliver a distinct good or service to a customer. Revenue is recognized only as each performance obligation is satisfied. Campfire tracks performance obligations at the contract level and automates the corresponding revenue schedules.

The process of ensuring two sets of records agree — typically matching the general ledger to a source of truth such as a bank statement, payment processor, or billing system. Campfire automates reconciliation continuously, matching payments to invoices and surfacing exceptions for human review.

The process of recording revenue in the period it is earned, in accordance with ASC 606 or IFRS 15, regardless of when cash is received. Campfire automates revenue recognition across subscription, usage-based, milestone, and hybrid billing models with full audit trails.

Independent security and operational auditing standards. SOC 1 covers internal controls over financial reporting; SOC 2 covers security, availability, and confidentiality. Campfire is SOC 1 & 2 Type 1 & 2 certified, providing assurance for customers preparing for their own audits or public markets.

A US federal law requiring public companies to maintain robust internal controls over financial reporting. Campfire is designed for SOX-readiness with granular permissioning, full audit trails, and controls designed in collaboration with Big Four auditors at PwC and Deloitte.

The price at which a company would sell a distinct good or service on its own. Under ASC 606, when a contract includes multiple performance obligations, the transaction price must be allocated based on relative SSPs. Campfire handles SSP allocation automatically.

Revenue from customers paying a recurring fee — monthly or annually — for continued access to a product or service. Subscription revenue is recognized ratably over the service period and is the foundation of SaaS ARR. Campfire automates subscription revenue recognition and deferred revenue schedules.

The automatic assignment of financial transactions to the correct account in the chart of accounts. Campfire's Accounting Intelligence learns vendor patterns, account mappings, and cost-center rules over time, categorizing millions of transactions monthly without manual review.

Revenue that varies based on customer consumption — API calls, seats, data volume, or other usage metrics. Usage-based billing requires sophisticated metering and recognition logic. Campfire connects to metering engines like Metronome and applies pricing tiers to raw usage data automatically.

The comparison of actual financial results to budgeted or prior-period figures, with explanations for the differences. Variance analysis is a core deliverable of the monthly close. Campfire's Ember AI generates variance explanations with specific driver detail, replacing hours of manual commentary writing.