Accounting Services - Alberta | CSB CREATIVE BUSINESS SOLUTIONS
  • Home
  • Services
    • Business Consultation
    • Accounting Record Cleanup and Business Review
    • Cloud Accounting Setup
    • Virtual Financial Management (Bookkeeping)
    • Payroll
    • Cash Flow Forecasting and Budgeting
    • Real-time Management Reporting and Financial Modelling
    • Accounting Software Training
    • CFO Services
  • About
  • Contact
  • Blog
  • Client Access
    • QuickBooks Training >
      • Online Training Videos by Intuit
      • ​Webinars by Intuit
      • Watch How to Videos for Common Activities
  • INFO@CB-SOLUTIONS.CA
  • Learning Centre
    • Critical Business Information (E-Book)
    • Microsoft 365 for Accountants (Course)
    • Microsoft 365 for Businesses (Course)

Accounting Terms That Every Business Owner Should Know

7/12/2021

0 Comments

 
Picture

Handling business finances is not an easy task. That’s why you have an accounting professional to assist you! But do you ever get utterly confused after having a conversation with your accountant? Understanding some of the key accounting terms will help you grasp what your accounting professional is talking about. By the end, you may just have a deeper understanding of what it is that your accounting professional does.
 
Here is a list of fifteen common accounting terms that you can refer to when trying to figure out what your accountant just said. 

Accounts Payable (AP)
The expenses a business has incurred and recorded, but not yet paid.
 
Accounts Receivable (AR)
The total amount of a company’s sales where the revenue has not yet been collected.
 
Asset
Anything the business owns that has monetary value.
 
Balance Sheet (BS)
A financial statement that reports a company’s assets (what they own), liabilities (what they owe), and equity (assets – liabilities or the owner’s balance).
 
Accrued Expense
An expense that has not yet been received or paid but your business has agreed to pay in the future.
 
Book Value (NBV)
The original value of an asset less any depreciation or amortization recorded against it.
 
Cost of Goods Sold (COGS) 
Expenses and costs related to the production of a product or service including materials and labor.
 
Gross Margin (GM)
A company’s profitability as a percentage after deducting the COGS from the revenue earned.
 
Gross Profit (GP)
A company’s profitability as a dollar amount after deducting the COGS from the revenue earned.
 
Income or Profit & Loss Statement (P&L)
A financial statement showing revenue, expenses, and profits over a specified period of time.
 
Accounting Period
The length of time specified in a set of financial statements.
 
Cash Flow (CF)
The inflow and outflow of cash in a business. Positive cash flow means more money came in than out and vice versa.
 
Fixed Cost
A consistent cost that does not change regardless of the amount of sales. Rent and employee salaries are examples of fixed costs.
 
Variable cost
A cost that changes as the amount of sales changes. Production supplies and raw materials are examples of variable costs.
 
Liquidity
How quickly something can be converted into cash.
  
Understanding these terms will help you understand your accounting professional and feel less confused about what information they need from you. Use this accounting jargon when talking with your accountant if you really want to impress them. Or simply refer to this list later to further understand what they are talking about. 

At CSB Creative Business Solutions, we are here to help business owners and accountants. Contact us to learn how we can help you. 
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Cathy Badry, BComm, CPB
    Accounting professional
    taking away your business hassles, providing you peace of mind to focus on the important parts of your life.  Let’s connect to see how I can help you and your business succeed!

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021

    Categories

    All
    Accounting Professional
    Microsoft 365 Tips
    Microsoft 365 Training

    RSS Feed

Picture


terms and conditions

privacy policy

Copyright © 2021 CSB Creative Business Solutions. All rights reserved.  Site powered by Weebly. Managed by Rebel.com
  • Home
  • Services
    • Business Consultation
    • Accounting Record Cleanup and Business Review
    • Cloud Accounting Setup
    • Virtual Financial Management (Bookkeeping)
    • Payroll
    • Cash Flow Forecasting and Budgeting
    • Real-time Management Reporting and Financial Modelling
    • Accounting Software Training
    • CFO Services
  • About
  • Contact
  • Blog
  • Client Access
    • QuickBooks Training >
      • Online Training Videos by Intuit
      • ​Webinars by Intuit
      • Watch How to Videos for Common Activities
  • INFO@CB-SOLUTIONS.CA
  • Learning Centre
    • Critical Business Information (E-Book)
    • Microsoft 365 for Accountants (Course)
    • Microsoft 365 for Businesses (Course)