Are you intimidated by “Accountant speak”? Have you avoided looking at your accounts because it’s intimidating? Here are some helpful definitions of the most commonly used Accounting terms. Click here or here for websites with more detailed definitions.
Accounting - A method of recording, classifying, and summarizing financial information for your business
Asset - What your company owns or has rights to (ex. Accounts Receivable is an asset!)
Balance Sheet - A statement that details assets, corresponding liabilities on those assets and equity or retained earnings
Budget - Plan that formulates a company’s goals and objectives in financial terms