This is the final list of words on our latest series of “Bookkeeping Words You Need to Know”
Bookkeeping Words You Need to Know (Letters A to C)
Bookkeeping Words You Need to Know (Letters D to H)
Bookkeeping Words You Need to Know (Letters I to N)
Opening Balances: Transferring your accounts from another system or from one year to the other, a closing balance needs to be posted based on the opening balance. Therefore, it is the beginning balance of each account.
Overheads: Business expenses that are ongoing that help businesses on their day to day operations. This may include things like wages, lease and utility bills.
Payroll: This is used to be the references of the company employee payments. This may include taxes and their corresponding deductions.
Petty Cash: When buying everyday supplies and small items, a small amount of cash which is allocated for such purposes.
Profit and Loss: A report that shows the financial revenue and expenses over a period of time.
Purchase Ledger: A record of every invoice of how much the business owes or the expense and purchases.
Reconciliation: Comparing two sets of records and making sure they match, for example, matching an expense sheet with the purchase receipts.
Remittance: Money being sent to customers for goods and services with its accompanying document.
Retained Profits: Whatever money that is kept within the business rather than paid to the owners or shareholders.
Revenue: Money being received by the business which is shown on top of the profit and loss report.
Sales Ledger: When a detailed record of the sales for every customer is made.
Subsistence: Any expense related to a business trip, traveling, food and overnight stays.
Turnover: When goods are sold or services performed for a specific time period.
VAT (Value Added Tax): If you are registered for VAT, you need to add these to your sales invoices to claim back from purchases.
Write Off: When a debt needs to be removed from the sales ledger when customers debt is expected not to be able to be collected.