# Profynix business glossary

- **Agentic Business Operating System** (https://profynix.com/glossary/agentic-business-operating-system): An Agentic Business Operating System is business software whose AI agents do the work, not just store it. It runs payments, books, marketing, the website and customer follow-up inside rules the owner sets, and asks for approval before anything sensitive, such as moving money or messaging many customers at once.
- **AI agent** (https://profynix.com/glossary/ai-agent): An AI agent is software that takes a goal, plans the steps, uses tools to carry them out and checks the result, instead of only answering a question. In a business, an agent might find unpaid invoices, draft reminders and send them, rather than just explaining how to chase payment.
- **Human in the loop (approvals)** (https://profynix.com/glossary/human-in-the-loop): Human in the loop means an AI system pauses for a person to review and approve certain actions before they happen. In business software it is used for anything costly or hard to undo, such as payments, payroll, messages to many customers, deleting records or changing who can see what.
- **Invoice** (https://profynix.com/glossary/invoice): An invoice is a document a business sends a customer asking to be paid for goods or services. It lists who is billing whom, an invoice number, the date, each item with quantity and price, any tax such as VAT, the total due, the due date and how to pay.
- **Receipt** (https://profynix.com/glossary/receipt): A receipt is written proof that a customer has paid. It shows who paid, who was paid, the amount, the date, what the payment was for and how it was paid. Businesses issue receipts after payment; customers keep them as evidence for records, refunds, warranties and tax.
- **Profit margin** (https://profynix.com/glossary/profit-margin): Profit margin is the share of a sale you keep as profit, shown as a percentage of the selling price. Gross margin is (price − cost) ÷ price × 100. Selling for 10,000 something that cost 7,000 gives a 30% gross margin: 3,000 of every 10,000 is profit before overheads.
- **Markup** (https://profynix.com/glossary/markup): Markup is how much you add to the cost of an item to get its selling price, shown as a percentage of the cost. Markup = (price − cost) ÷ cost × 100. An item that costs 7,000 and sells for 10,000 has a 42.9% markup, which is the same as a 30% margin.
- **VAT (value added tax)** (https://profynix.com/glossary/vat): VAT is a tax on spending that registered businesses add to the price of goods and services and pay over to the tax authority, after deducting the VAT they paid on their own purchases. Rates differ by country: 7.5% in Nigeria, 16% in Kenya, 15% in South Africa and 20% in the UK.
- **PAYE (pay as you earn)** (https://profynix.com/glossary/paye): PAYE is the system where an employer deducts an employee's income tax from each salary payment and pays it to the tax authority. In Nigeria, PAYE follows the Nigeria Tax Act 2025 bands from January 2026, with the first ₦800,000 of yearly taxable income taxed at 0%.
- **Bank reconciliation** (https://profynix.com/glossary/reconciliation): Bank reconciliation is matching every payment in your bank account to a record in your books, such as an invoice, a bill or an expense, so the two agree. It catches missing records, double payments, bank charges and fraud, and it is what makes your profit and cash figures trustworthy.
- **CRM (customer relationship management)** (https://profynix.com/glossary/crm): A CRM is a system that keeps every customer and lead in one place, with their contact details, conversations, purchases and next steps, so nobody is forgotten. Its job is to make sure every enquiry gets an answer and every promising lead gets a follow-up at the right time.
- **Debtor days (DSO)** (https://profynix.com/glossary/debtor-days): Debtor days, also called days sales outstanding (DSO), is the average number of days customers take to pay you. Divide what customers owe you by your sales for a period, then multiply by the days in that period. Lower is better: fewer debtor days means cash arrives sooner.