Does your accountant often use words that you never know the meanings of?
Then this is the guide for you!
Accounting terminology can be complicated and daunting to many sole traders, partnerships and small business owners especially if you are new to the business world. There are often so many other aspects of running a business that take time to learn. Taking the time to learn a whole other language is the least of your worries so let this Jargon Buster help you out.
BALANCE SHEET TERMINOLOGY
Here are a few terms you’ll want to know when working with balance sheets:
Another key Equity account is Retained Earnings, which tracks all company profits that have been reinvested in the company rather than paid out to the company’s owners. Small businesses track money paid out to owners in a Drawing account, whereas incorporated businesses dole out money to owners by paying dividends.
INCOME STATEMENT TERMINOLOGY
Here are a few terms related to the income statement that you’ll want to know:
OTHER COMMON BOOKKEEPING TERMS
Some other common terms used in bookkeeping include the following:
Does your accountant often use words that you never know the meanings of? Post them below!
Thanks so much for the feedback about the bank feed and your client. It's really interesting to have these insights, they're really helpful. Are you an accountant? I would love to know more about what you do.
Also, is there anything else you can add to this Jargon List?
Welcome to the U.K QB Community. The great, @EmilyMockett wrote this post. I was wondering if there is anything else you could add to this? Or any tips you could suggest to our members about understanding the jargon that populates the finance world!
It would be great to have your input
Hi, @phils673 - hope you're having a great day.
I saw that you're preparing your clients for MTD and you want to move them over to QuickBooks. This is great!
I would love to learn more about what you do. Is there anything else you could add to Emily's list above?