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A Glossary Of Essential Accounting Terms

Rand Holyoak   | 

personal bookkeeping Orem Utah

Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific industry, and the accounting business is no exception. To help you understand the terms, acronyms, and phrases regularly used when working on accounting, bookkeeping and taxes, Holyoak & Co. has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend financial jargon and communicate your requirements effectively.

Balance Sheet (BS).

A financial report that summarizes a company’s assets, liabilities and owner/shareholder equity at a given time.

Profit and loss statement (P&L).

A financial statement that is used to summarize a company’s performance and financial position by reviewing revenues, costs, and expenses during a specific period of time, such as quarterly or annually.

Accounts receivable (AR).

The amount of money owed by customers or clients to a business after goods and services have been delivered.

Accounts payable (AP).

The amount of money a company owes creditors in return for goods and/or services they have delivered.

Fixed Assets (FA).

Long-term assets are held for more than a year such as real estate, land or major machinery.

Current assets (CA).

Assets that will be converted to cash within one year, such as inventory or accounts receivable.

Cost of goods sold (COGS).

Direct expenses that are related to the producing of goods that will be sold by a business.

If you’re looking for the leading accounting firm in Lindon, Utah, reach out to the experts at Holyoak & Co. We’re a one-stop shop for all of your accounting needs, from bookkeeping and tax preparation to payroll and consulting. We can help you lower your taxes, grow your business, reduce your expenses, and manage your company. We aim to add value to your business as a true business advisor, not just your bookkeeper.

View our full list of services here or get in touch with us by clicking here.