Easy-to-learn English Terms for Accounting
Are you an accountant or a bookkeeper, or planning to become one soon? Even if you’re not, when you’re in business, you want to be able to talk about every aspect of business—including useful things like accounting
No matter what, you can generally improve your business English by learning some key accounting terms. Sound great? Looks like we have just the thing for you!
Accounting, just like information technology, trade, sales and marketing, is one of those very specific business areas in which you need to have the right word at the right time. Accounting is about keeping track of money, so you simply can’t afford to make mistakes
How Can I Learn English Vocabulary for Accounting?
It’s important to be accurate because your company’s performance is reflected in the documents you work on. So we’ve selected the most frequently used accounting terms and turned them into an easy-to-process list.
All you need to do is read each word or phrase carefully, then have a look at the definition and examples. In general, when learning new vocabulary it’s a good idea to avoid translating the new words into your native language. With such a specific field like accounting, however, it may be easier for you if you try to think of each term in your native language, because you’re probably already using the term.
WHY YOUR BOOKKEEPING ISN’T TRANSFORMING YOUR BUSINESS AND CHANGING YOUR LIFE
Seriously. If done well, bookkeeping can be the catalyst for major change within your business. Since your business is one of your life’s big projects, these are major changes in your life too.
Historically, ‘doing the books’ was considered a necessary evil, merely a means to an end (and the end was an equally dreaded annual tax return).
Actually, good bookkeeping is your best tool for making smart decisions. And we’re not just saying that because we’re accountants and we love what we do. Without it, it’s hard to determine whether you’re truly making a profit, what you need to do to get more cash into the business, or whether you have enough money for the next big thing.
Bookkeeping in essence is the recording of your business’s financial data. It does involve data entry, and whilst it’s vital that data is up to date and entered regularly, good bookkeeping is less about entering the data itself, and more about what we do with it – how we apply what we know about your business finances, in order to make changes in your agency.
ookkeeping forms the building blocks of anything else you want to do financially. From recording bank transactions to unpaid invoices, it builds the financial picture of your business one piece at a time.
Business Bookkeeping: How to Get Your Finances in Order During COVID-19 Downtime
COVID-19 is impacting businesses big and small in various ways. Everyone is learning to react and adapt to survive. Facetime shopping services, “Buy Online, Pickup Curbside”, selling online, same-day delivery, virtual showrooms—you name it, businesses are probably trying it.
Regardless of your circumstances, there’s one thing that everybody is looking closely at right now: their finances. In fact according to Faire’s survey of 20,000 independent retailers, 70% report “not having enough cash on hand to handle this type of crisis”.
Whether you went fully remote or your retail business is temporarily closed, there’s no better time to get your finances in order. With just a few simple steps, you can polish up your books and hit the floor running when it’s back to “business as usual.”
How to Get Your Finances in Order During COVID-19
Working capital has never been more critical. Some are turning to emergency small business loans to stay afloat. Others are preparing their reopening strategies. And more are planning for the post-pandemic recession. Money, money, money. You either need it now, tomorrow or yesterday — and it’s probably more like yesterday, given the impact COVID-19 has had on retail traffic in the United States. In fact, daily transactions have dropped to ~65% below normal levels.
Clean Up Your Books
You’re busy—we get it. But there’s no better time to sit down and do your bookkeeping spring cleaning. Plus, now’s a much better time compared to the extended tax season when you’ll likely be focusing on returning to normal operations.
The Best Small Business Accounting Software
Keep Business Running With Small Business Accounting Software
According the US Bureau of Labor Statistics, about 20 percent of small businesses fail before they complete their second year. Among the many potential culprits for this widespread demise is the lack of effective money management and bookkeeping. Small business accounting software can do a lot to prevent your business from falling into this trap, keeping you on the right side of that grim statistic.
Financial bookkeeping is complicated and time consuming. Business owners find it challenging enough to cover the basics—paying the bills and tracking incoming revenue—let alone answer critical questions such as: Are we profitable? Why or why not? Can we make required tax payments? Should we invest in new equipment? Do we need to explore financing? Will we hit our budget numbers? Where can we cut expenses?
A good small business accounting tool can answer these questions in seconds, based on the input you provide. Once you have populated a tool with information about your financial accounts, your customers and vendors, and the products or services you sell, you’ll be able to use that data to create transactions. These feed into reports, which can provide critical insights. Instant search tools and customizable reports help you track down the smallest details and see an overview of how your business is performing. Android apps and iOS apps for the tools give you access to your finances anywhere that you have wireless connectivity.
Intuit QuickBooks Online’s advanced implementation of technology, its skillful blend of features, its customizability, excellent mobile apps, and user experience (UX) have made it our Editors’ Choice again this year. We’re not crazy about the recent price increase but Intuit services are often heavily discounted.
Setting Up Bookkeeping
Depending on how long your business has been operating, getting started with a small business accounting tool can take anywhere from five minutes to several hours after signing up for an account. Small business accounting tools charge monthly subscription fees and usually offer free trial periods. The more you need the tool to do, the longer your setup tasks will take (and the higher the monthly payment).
Facts About Bookkeeping Services for Small Businesses
Bookkeeping is essential for any business. Through bookkeeping, an owner can identify if a business is generating profits or losses.
What Are Bookkeeping Services?
Bookkeeping is the recording, storing, and retrieving of financial transactions for a company, nonprofit organization, individual person, etc.
Bookkeeping can include common financial transactions
paying suppliers
billing for services provided or goods sold to clients
documenting receipts from customers
recording invoices
processing employees’ payroll
financial reporting
monitoring accounts receivable
recording depreciation
and more
Both bookkeeping and accounting are necessary for any business, but they aren’t the same thing. Bookkeeping is the recording of financial transactions, whereas accounting is the interpreting, classifying, analyzing, reporting, and summarizing of financial data.
Types Of Bookkeeping Systems
main types of bookkeeping systems are the single-entry system and the double-entry system. Single-entry bookkeeping is used for companies that have few or uncomplicated transactions. This system records business expenses and cash sales that are paid when incurred.