BOOKKEEPING RESOURCES FOR YOUR BUSINESS

GLOSSARY OF BOOKKEEPING TERMS

WHAT DOES IT MEAN? BECAUSE SOMETIMES IT FEELS LIKE BOOKKEEPING TERMS ARE A DIFFERENT LANGUAGE. LET US TRANSLATE.

BANK FEED: WHERE ALL THE STUFF YOU BUY USING YOUR CREDIT CARD OR BANK ACCOUNT FEED THROUGH IN QUICKBOOKS ONLINE. YOUR BOOKKEEPER THEN GOES HERE TO CATEGORIZE THOSE TRANSACTIONS AS THEY HAPPEN.

CHART OF ACCOUNTS: A SPOT IN YOUR ACCOUNTING SOFTWARE THAT SHOWS YOU EVERY "ACCOUNT" THAT YOU CAN USE TO CATEGORIZE A TRANSACTION. EVERY SINGLE THING WOULD BE LISTED HERE. 

ACCOUNTS RECEIVABLE: MONEY THAT'S OWED TO YOUR BUSINESS, USUALLY IN THE FORM OF INVOICES THAT HAVEN'T BEEN PAID YET.

ACCOUNTS PAYABLE: MONEY THAT YOU OWE OTHER PEOPLE. USUALLY BILLS THAT HAVE BEEN SENT TO YOU TO PAY. 

INVOICE: A FORM THAT YOU SEND TO CLIENTS WHO OWE YOU MONEY THAT TELLS THEM HOW MUCH TO PAY YOU AND IN WHAT FORM TO PAY IT. 

BILL: A FORM THAT A VENDOR SENDS YOU TELLING YOU HOW MUCH YOU OWE AND HOW TO TO PAY IT. 

CLIENT:  A PERSON YOU PROVIDE A PRODUCT OR SERVICE TO

VENDOR: PEOPLE WHO PROVIDE A PRODUCT OR SERVICE TO YOU

PROFIT AND LOSS: A REPORT THAT TELLS YOU HOW MUCH MONEY YOUR BUSINESS MADE AND HOW MUCH IT SPENT,

BALANCE SHEET: A REPORT THAT SHOWS YOU HOW MUCH MONEY YOU HAVE IN YOUR BANK ACCOUNT, HOW MUCH YOU OWE ON YOUR CREDIT CARD, ACCOUNTS RECEIVEABLE, ACCOUNTS PAYABLE, AND HOW MUCH YOU TRANSFERRED TO YOUR PERSONAL ACCOUNTS

W9: A TAX FORM YOU SHOULD COLLECT FROM EVERY SINGLE PERSON YOU PAY MONEY TO WHO IS NOT AN EMPLOYEE OF YOUR BUSINESS.

1099: A TAX FORM YOU SEND TO EVERY SOLE PROPRIETOR OR LLC WHO YOU PAID OVER $600 TO IN A CALENDAR YEAR. DUE BY JANUARY 31 EACH YEAR. 

CASH FLOW: THE MONEY THAT MOVES INTO AND OUT OF YOUR BANK ACCOUNT.

BUDGET: A GUIDE TO HOW MUCH TO SPEND AND HOW MUCH TO SAVE IN YOUR BUSINESS.