Glossary of Terms
Bookkeeping Terms to Know
This is a list of accounting and bookkeeping terms that we use every day. If you need help with terminology that Elite Bookkeeping Services or your accountant has used that can’t be found on this page, please contact us. We’re happy to help!
Money that a company owes to other people or businesses for things they haven’t paid for yet.
Money that other people or businesses owe to a company for things they haven’t paid for yet.
A way of recording money earned and spent when it happens, even if the actual money hasn’t been received or paid yet.
When a company spreads out the cost of something intangible, like a patent or copyright, over its useful life.
A report that shows what a company owns, what it owes, and what is left over for the owners.
A way of recording money earned and spent only when the actual money is received or paid.
A report that shows how much money comes in and goes out of a company.
An accounting chart of accounts is like a special filing system for money in a business. It uses sections and labeled folders to organize different types of money activities, like sales, expenses, liabilities, and owner’s equity. It helps businesses keep track of their finances and understand how money comes in, goes out, and where it’s being used.
A professional accountant who has passed exams and can provide accounting services to the public.
When a company spreads out the cost of something it owns, like a building or machine, over its useful life.
A way to measure how much money a company is making before considering certain expenses. It looks at the company’s earnings without counting interest payments on loans, taxes, or the costs of things like wear and tear on equipment or the use of copyrights.
The part of a company that belongs to the owners after taking away what is owed to others.
Money that a company spends to run its business and make products or offer services.
A set of rules that companies use to prepare and show their financial statements.
A place where all the company’s financial transactions are recorded.
A report that shows how much money a company made and spent during a certain time.
Money that a company owes to other people or businesses.
Money that a company earns by selling things or providing services.
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