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Accounting Principles 101, Part 4

November 14, 2019 by OSYB Staff

Here are some financial terms that Intuit QuickBooks shares that you should get well-acquainted with for when you implement accounting principles in your business:

  • Accounts payable – monies owed to vendors and creditors
  • Accounts receivable – monies owed to the business from clients and customers for services rendered to products sold
  • Amortization – process of spreading out the cost of an intangible asset over a certain period, usually the entire lifespan of the item.
  • Assets – anything of value owned by the business such as bank accounts, real estate, inventory, etc.
  • balance sheet – snapshot of a company’s financial standing at the end of a specific period
  • capital – cash you have in your accounts and all of your assets and investments
  • cash flow – money coming in and going out of the business
  • depreciation – represents the recovery of cost over time and applies to long-term assets like computers, furniture, machinery, and equipment used to run a business
  • liabilities – anything that relates to a debt or financial obligation

Even if you hire financial professionals to do your work for you, a basic knowledge of accounting principles and terms can only help you to make the best decisions together with your professionals for your small business.


For full article and details: Accounting principles for small business owners

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