Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of a specific industry’s daily operations, and the accounting business is no exception.
So, to help you understand the terms, acronyms, and phrases regularly used when working with a bookkeeper, SHEVAS BOOKKEEPING AND SHEVAS LEGAL SERVICES has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your accounting needs effectively.
Bookkeeper: A professional who knows how to manage finances. Many use computer programs, while others prefer to use paper and pencil.
CPA/CGA: A chartered accountant (mostly does business taxes and liaises with bookkeepers).
Financial Analyst: Someone who reviews and analyzes finances and can work with a bookkeeper or be a bookkeeper who works with software exclusively.
Payroll Compliance Practitioner: An individual who carries out payroll and is certified by the Canadian Payroll Association (CPA).
QuickBooks ProAdvisor: A person who took courses put out by Intuit to learn QuickBooks, either online, desktop, or both.
Accounts Receivable: Money coming into the business or that needs to get collected by the company.
Accounts Payable: Money going out to (to pay expenses) of the business.
Balance Sheet: A report that summarizes a company’s assets and liabilities.
Cash Flow: Revenue and expenses that a company expects to generate over a period.
COGS (cost of goods sold): The direct cost of the product sold by the business.
DR (debit): An entry where there is either an increase in assets or a decrease in liabilities.
CR (credit): An accounting entry where there is either a decrease in an asset or an increase in a liability.
Equity/owners equity: The amount an owner or shareholder either puts in or takes out of a business.
GAAP (generally accepted accounting principles): A set of rules that all companies agree to keep in regards to books and records
GL (general ledger): A complete record of the financial transactions over a company’s life.
We hope these terms made you feel more confident about accounting. If you’re looking for a bookkeeper, reach out to the experts at SHEVAS BOOKKEEPING AND SHEVAS LEGAL SERVICES.
Our services include QuickBooks ProAdvisor, Taxes Ontario, notary public, budgeting, and administration.
We serve clients across North York, Vaughan, Toronto, Scarborough, Brampton, Pickering, Oshawa, Richmond Hill, Markham, and Mississauga, ON.
With many years of experience in the accounting sector, we make financial recording and management convenient for our clients so they can devote their energies to other aspects of their business.
You can VIEW OUR FULL LIST OF SERVICES HERE, READ CUSTOMER REVIEWS HERE, or GET IN TOUCH WITH US HERE.