Glossary: Key Terms & Concepts

The overall accounts payable (AP) balance of a corporation at a given moment in time will appear in the current liabilities column of its balance sheet. Accounts payable are debts that mus...read more

The term "accounts receivable" refers to a company's unpaid bills or the money owed to it by customers. Accounts that a company is entitled to receive as a result of delivering a product o...read more

A bank reconciliation statement reconciles an entity's bank account with its financial records. The statement lists all deposits, withdrawals, and other transactions in a bank account over...read more

An invoice and a bill are documents that convey the same information about the amount owing for the sale of goods or services. Still, a company uses an invoice to collect money from its cu...read more

The practice of collecting and managing cash flows is known as cash management. Individuals and businesses both benefit from good cash management; it is an essential part of a company's fi...read more

When a firm refers to money owed to them by a customer, it is referred to as collections. When a consumer fails to pay a company within the agreed-upon terms, the bill becomes past due and...read more

Keeping track of your expenses is a crucial component of building a budget for your small business. The financial health of your budget is improved by keeping a daily record of your expens...read more

A general ledger is a financial data record-keeping system that includes debit and credit account records confirmed by a trial balance. It helps to keep track of all the financial transact...read more

Your firm will be able to hold funds in multiple currencies if you have a multi-currency bank account. When conducting a business across borders, having a multi-currency account can help y...read more

The process of paying salaries is referred to as payroll. It begins with preparing a payroll list and concludes with the recording of expenses. It's a complicated procedure requiring colla...read more

Project accounting is a sort of managerial accounting that focuses on managing and delivering projects. It entails tracking, reporting, and analyzing financial results and consequences and...read more

Purchasing is a method by which an individual or organization acquires goods or services to achieve its objectives. Despite the efforts of numerous organizations to establish purchase stan...read more

Revenue recognition is a generally accepted accounting standard (GAAP) that identifies and accounts for the exact criteria under which revenue is recognized. The revenue recognition princi...read more

Spend management is the tried-and-true method of monitoring all supplier connections and company purchasing to identify and maximize every dollar spent. Best practices in spend management ...read more

A tax is a governmental mandatory financial charge or levy imposed on a taxpayer to fund certain public expenses. The taxation system is critical for a country's economy since money is req...read more