23 Essential Bookkeeping Terms Every Small Business Should Know

It is safe to send cheques in the post, unlike cash which can be stolen. Another name for a bookkeeper is Accounts Payable/Receivable Clerk. Bookkeepers update financial records, and transactions, process payments, and reconcile statements. A journal entry includes the transaction date, the amount spent, the accounts affected, and a description about the transaction. Your expenses go on your profit-and-loss statement and can be used for tax deductions. However, it’s essential to keep up with expense documents such as receipts and invoices to ensure that you can back up your claims on your tax forms.

Related Words

People often inter-change bookkeeper and accountant to mean the same thing. Also refers to the person who does the annual financial statements and tax calculations. Single-entry bookkeeping helps you keep up with all transactions line by line. The problem is that accounting errors are easier to make because there’s no matching system in place.

• Selecting the right title for your business is a complicated job.
• The balance sheet is a comparison between all of your assets (what you own) and all of your equity and all of your liabilities (what you owe).
• The opening balances are the values found on the first day of the financial period.
• Handling financial resources, evaluating risk factors, making financial plans, preparing reports, reconciling accounts, etc. are some functions a financial administrator plays.
• When you replace “bookkeeper” with a synonym, back it up with quantifiable achievements.
• This goes on for 12 months until the end of the financial year when all the data is sent to a chartered accountant.

Bank reconciliation

If you use an accrual-basis accounting method, you’ll record accruals, both positive and negative, at the time of the sale. This is the opposite of cash-basis accounting, which means you record revenue and expenses when you’ve made or received payment. Accounts receivable refers to the money that you haven’t received yet from your customers for either your product or service (think of unpaid invoices).

• There’s traditionally a lot of effort that’s required to reconcile all your transactions down to the penny.
• Using “bookkeeper” in your resume can be effective when it refers to specific industry standard keywords or when you need to avoid unnecessary jargon.
• When a business is given an invoice by an overseas supplier in a foreign currency, it has to be converted into the local currency when being entered into the accounts.
• When funds are taken out of a bank account they are ‘withdrawn’.
• When a business buys goods or services it is called purchasing.

What is another word for bookkeeper?

Similarly, curiosity for knowing other words for bookkeeper has increased amongst businesses. If you also want to know another word for bookkeeper, read this blog carefully. The cost of goods sold qualifies as an expense (traditionally the largest for your business) and is included on your profit-and-loss statement. When you subtract your cost of goods sold from your net sales, you get your gross profit.

Choose the right synonym for “bookkeeper” by matching it with the job description to highlight relevant skills and ensure clarity and impact. This approach helps you align your resume with what employers are looking for, making your qualifications stand out. A worksheet is usually a spreadsheet that includes your list of accounts, account balances, adjustments, and adjusted balances. Equities typically go on your balance sheet along with your assets and liabilities.

• The date at which it is entered will have a different exchange rate to the date when it is paid because exchange rates fluctuate on a daily basis.
• Another name for a bookkeeper is Accounts Payable/Receivable Clerk.
• A balance sheet report shows the business owners and managers how much equity is in the business, how many assets the business owns, and what the business owes in liabilities.
• The final balance on the bank statement or in the cashbook or ledgers at the end of any given day.
• A fiscal yearis a financial year made up of 12 consecutive months that can begin with any month – it doesn’t have to be January.
• You record on your balance sheet the amount that you haven’t paid yet to vendors and suppliers.

What You Should (and Should Never) Outsource in Accounting?

A worksheet is prepared when your trial balance doesn’t match the bank record. You then have to go in and make adjustments, which are tracked in the worksheet. Payroll refers to a list of your employees and how much you pay each one.

Synonyms & Antonyms

The securefinancial institution where businesses deposit their earnings and from which they pays their bills. Banks provide business advice and can advances loans virtual accountant to businesses for growth. ‘ˈbʊkˌkiːpɪŋ’ the activity of recording business transactions. ‘ˈbʊkˌkiːpɝ’ someone who records the transactions of a business.

Expenses

When a business needs services or parts they can shop around and ask for suppliers to provide a written cost for the parts or services – this is a quote. The business would chose the balance sheet supplier who provided the best quote. Quotes are usually only valid for a certain time frame – a few weeks or months. Buying equipment such as a computer by paying it off through a finance company. At the end of the lease period the business will have the option of making a final payment to own it, or they can return the equipment and upgrade to a newer model.

Single-entry bookkeeping

Unless you have a background in accounting, the majority of bookkeeping terms seem like jargon and can be confusing. Tax that is deducted from sales or purchases of goods or services and paid to the governing authorities. A deduction from the income earned by a business or individual. When a business buys goods or services it is called purchasing.

• The method of bookkeeping in which all financial transactions are entered twice – once as a debit and once as a credit.
• Backups are vital to preventing loss ofdata if the computer crashes.
• You can highlight the terms by the frequency with which they occur in the written English language using the menu below.
• They design models to comprehend future financial status, track investment opportunities, and initiate profit plans.
• A document that details the sale or purchase of stock, parts or services.
• Mostassets belonging to a business decrease in worth over time due to wear and tearand daily use – this is depreciation.

Synonyms, Antonyms & Associated WordsRate these synonyms:1.0 / 1 vote

This term is used most often on bank reconciliations to aid in the reconciling of the cash book with the bank account. A number or combination of numbers or letters that are used to identify each transaction within the cash book following through to the journals and ledgers. Each financial transaction is allocated a unique reference that can be traced easily through the bookkeeping system. The opening balances are the values found on the synonym for bookkeeper first day of the financial period. So for example, if your financial year starts on 1 January, the balances at the start of that day in the cash book or the ledgers are the opening balances.