A piling up of work that needs to be done. The tern "backlog" has numerous usage in finance. It may connote to the sales order of the company pending to be filled or a pile of financial of financial paperwork which must be processed, loan applications for example. In case a public company has some backlog, implications for shareholders arises because the backlog may affect the future earnings of the company due to its incapacity to meet demands. A backlog is usually something that companies avoid.