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When it comes to running a business and maintaining your bookkeeping, there is certain lingo to know and words you’ll come to live by. We put together an ABC’s of lingo you must know and keep in mind while navigating your business and your bookkeeping 

Accounts Payable/Receivable: A/P is the money a business owes to vendors and is recorded as a liability. A/R refers to the money owed to a business for its goods/service by vendors or customers, and is recorded as an asset. 

Balance Sheet: An important financial report that summarizes a business’ assets, liabilities, and equities. 

Cash Flow: The movement of cash in and out of your business at a specific time. It’s important to b

As they say, knowledge is power, so it only makes sense that the more you know, the more powerful you become! Bring that knowledge and power over to your books, even if you’re not the one working on them every day. We’ve compiled some accounting and bookkeeping terms that are commonly used but may not be commonly known. You should know what your books and your accountant are telling you, and that starts with breaking down some of the key terms. If you run into a term you’re unfamiliar with, always ask your accountant. 

Accounts Payable

A/P includes all of the expenses that a business has incurred but not yet paid. This is recorded as a liability on your Balance Sheet, since it’s a debt owned by the company.