Glossary
AP (Accounts Payable)
Refers to the money your business owes to vendors, suppliers, or contractors for products and services already received. Managing Accounts Payable helps ensure bills are paid on time, maintain good vendor relationships, and avoid late fees.
AR (Accounts Receivable)
These are outstanding payments your customers owe you for products or services. This helps you keep track of all payments.
Bank reconciliation
The process of comparing your accounting records to your bank and credit card statements to ensure all transactions are accurate, complete, and properly recorded. Regular reconciliations help identify errors, missing transactions, and unauthorized activity.
Monthly Close
A final review is conducted at the end of each month. This includes adjustments, reconciliations, and reports to ensure everything is in order before moving on to the next period.
Payroll
The process of calculating, paying, and recording salaries, taxes, and benefits for your employees or contractors. This also includes filing any legally required tax forms.
General Ledger
It's the main record where all your business transactions are grouped. It serves as the basis for financial reports that show how your company is performing.
Financial report
A document that shows the financial situation of your business. The main ones are: income statement (profit/loss), balance sheet, and cash flow statement.
QuickBooks Online (QBO)
It's a digital system we use to record and organize all your financial information. Secure, accessible, and designed to give you clarity from anywhere.
1099 (for the US)
This form is given to independent contractors at the end of the year if they were paid more than a certain amount. It's a way to report payments to people who are not employees.
