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.

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

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