We have now created long indexes of words that you may hear in the finance world and by your bookkeeper or accountant. Now we added a few more.
Income Statement: An outline of a business’ financial activity (sales minus expenses and costs) over a period of time that ends with the total net loss or profit as financial statement.
Interim Reports: When the year has ended, this is the financial report that is created that helps business owner, banks and loan companies get a picture of well the business is doing throughout the year.
Inventory: Tracking your products that are available to be sold, or basically taking into account all of the items and products ready to be purchased by clients.
Journals: Daily records of transactions the Bookkeeper keeps.
Liabilities: All of the debts a business owes in loans and unpaid bills.
Loss: Expense is greater than income.
Margin: Difference between selling price and the production or item costs. ($40 item sold for $100 has a $60 margin.
Net Profit: Gross profit minus the Business expenses.