Bookkeeping Terminology For the Biz Owner

Some useful terms to become accustomed to when discussing your business finances.

Account Payable – money owed to suppliers, creditors, etc.

Accounts Receivable – money owed to your business.

Balance Sheets – financial report that summarizes your business assets (what it owns), liabilities (what it owes) and owner or shareholder equity, at a given time.

Bank Reconciliation – process of matching transactions entered into QuickBooks Online against your bank statements.

Bookkeeping Cleanup – organizing your accounts and financials. Possible for current QuickBooks Online users or those who are looking to switch to QuickBooks Online.

Cash Flow Report – financial report that lets you know how your business is doing by showing you the amount of cash that flows into your business, and the amount that flows out within a specific period.

Credit Card Reconciliation – process of matching transactions entered into QuickBooks Online against your credit card statements.

Custom Financial Reports – get the data that matters most to you and your business, pulling the exact data you need to dive into the details of your business.

General Ledgers – record-keeping system used to sort, store, and summarize your businesses financial transactions.

Income Statements/Profit & Loss Report – statement that shows profit by comparing revenue to expenses.

Payroll – payment to your employees

W-2’s – tax form; Form W-2 reports taxable wages paid to an employee during a one-year period, along with employment taxes withheld from paychecks for that year. Employers must also file a copy of employee W-2s with the IRS.

1099’s – tax form; if you hire an independent contractor/self-employed individual, you need to send them a Form 1099-NEC (1099-MISC in prior years) for any work done over $600 during the tax yea

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