• Home
  • About
  • Services
    • Services For Individuals
      • Personal Financial Planning
    • Business Services
      • Small Business Accounting
      • Payroll
      • Business Valuation
      • Succession Planning
      • New Business Formation
      • Internal Controls
    • Tax Services
      • Tax Preparation
      • Tax Planning
      • TAX PROBLEMS
        • IRS Audit Representation
        • Non-Filed Tax Returns
        • Back Taxes Owed
        • Payroll Tax Problems
        • IRS Liens
        • IRS Levies
        • IRS Wage Garnishment
        • IRS Seizures
        • Offer In Compromise
        • IRS Payment Plan
        • Innocent Spouse Relief
        • Get Your IRS File
    • QuickBooks Services
      • WHY QUICKBOOKS
      • QUICKBOOKS SETUP
      • QUICKBOOKS TRAINING
      • QUICKANSWERS
      • QuickBooks Tips
      • Buy QuickBooks and Save
  • Newsletter
    • Previous Newsletters
    • News & Weather
  • Financial Guides
    • Life Events
    • Business Strategies
    • Investment Strategies
    • Tax Strategies for Business Owners
    • Tax Strategies for Individuals
    • Frequently Asked Questions
  • Tax Center
    • Track Your Refund
    • Tax Due Dates
    • Tax Rates
    • IRS Tax Forms and Publications
    • Record Retention Guide
    • State Tax Forms
    • 1040 Tax Calculator
    • Marginal and Effective Tax Rates Calculator
  • Resources
    • Financial Calculators
    • News & Weather
    • SecureSend
    • Internet Links
    • Security Measures
    • Recommended Books
  • Client Portal
  • Contact

Contact Us

    Your Name (required)

    Your Email (required)

    Subject

    Your Message

    GLOBAL TAX & ACCOUNTING SERVICE INC.

    GLOBAL TAX & ACCOUNTING SERVICES INC.

    GLOBAL TAX & ACCOUNTING SERVICE INC.

    Click here for the client portal

    OFFICE -516-558-0065

    Email:omaida@globaltax.info

    • Fb
    • linkedin
    Your Personal Accountant Wherever You Are. Se Habla Español

    Contact Person

    Name: Omaida Fishman

    200 Broad Hollow Road, suite 203,
    Melville, NY 11747

    Cell: 516-784-7227

    Fax: 516-679-1964

    Email:omaida@globaltax.info

    Get Directions

    25 Accounting Terms You Should Know

    25 Accounting Terms You Should Know

    QuickBooks is intuitive, easy to use, and flexible, but it is not an accounting manual or class or tutorial.

    If your business is not particularly complicated, you might get by without knowing a lot about the principles of bookkeeping. Still, it helps to understand the basics, so let’s take a look at some terms and phrases that are helpful for you to understand.

    Account. You set up financial accounts like checking and savings in QuickBooks, but in accounting terms, these are referred to as the accounts in your Chart of Accounts: asset, liability, owners’ equity, income and expense.


    Figure 1: A QuickBooks Chart of Accounts 

    Accounts Payable (A/P). Everything that you owe to vendors, contractors, consultants, etc. is tracked in this account.

    Accounts Receivable (A/R). This account tracks income that hasn’t been realized yet, like outstanding invoices.

    Accrual Basis. This is one of two basic accounting methods. Using it, you record income as it is invoiced, not when it’s actually received, and you records expenses like bills when you receive them. Using the other method, Cash Basis, you would report income when you receive it and expenses when you pay the bills.

    Asset. What physical items do you own that have value? This could be cash, office equipment and real estate. In QuickBooks you’ll be managing two types. Current Assets are generally used within 12 months (or you could convert them to cash in that length of time). Fixed Assets refers to belongings like vehicles, furniture and land, property that you probably won’t use up in a year and which usually depreciates in value. Depreciation is very complex; you may need our help with that.

    Average Cost. This is the inventory costing method that programs like QuickBooks Pro and Premier use to calculate the value of your stock.


    Figure 2: QuickBooks provides a Statement of Cash Flows report. 

    Cash Flow. This refers to the relationship between incoming and outgoing funds during a specific time period.

    Double-Entry Accounting. This is the system that QuickBooks uses–that all legitimate small business accounting software uses. Every transaction must show where the funds came from and where they went. Each has a Credit (decreases asset and expense accounts) and Debit (decreases liability and income accounts) which must balance out (other types of accounts can be affected).

    Equity. This refers to your company’s net worth and is the difference between your assets and liabilities.

    General Journal. QuickBooks handles this in the background, so it’s unlikely you’ll ever be exposed to it. We sometimes have to create General Journal Entries, transactions required for various reasons (errors, depreciation, etc.) that contain debits and credits. Please leave that to us.

    Item Receipt. You’ll create these when you receive inventory from a vendor without a bill.

    Job. QuickBooks often associates customers with multi-part projects that you’ve taken on, like a kitchen remodel.

    Net income. This is your revenue minus expenses.

    Non-Inventory Part. When you purchase an item but don’t sell it or you buy something and resell it immediately to a customer, this is what it’s called. It’s merchandise that isn’t stored by you for future sales.

    Payroll Liabilities Account. QuickBooks tracks federal, state and local withholding taxes, as well as Social Security and Medicare obligations, that you’ve deducted from employees’ paychecks and will remit to the appropriate agencies.


    Figure 3: QuickBooks helps you track and remit Payroll Liabilities. 

    Post. You won’t run into this term in QuickBooks. It simply refers to recording a transaction within one of your accounts.

    Reconcile. QuickBooks helps you with this. It’s the process of making sure your records and those of your financial institutions agree.

    Sales Receipt. This is how you record a sale when payment is made in full during the transaction.

    Statement. You’ll generally use invoices to bill customers in QuickBooks, but you can also send statements, which contain transaction information for a given date range.

    Trial Balance. This standard financial report tells you whether your debits and credits are in balance. Should you run this report and find a problem, let us know right away.

    Vendor. With the exception of employees, QuickBooks uses this term to refer to anyone who you pay as a part of your business operations.

    These are just a few of the terms you should recognize and understand. We hope you’ll contact us when you need help understanding how the accounting process fits into your workflow.

    25 Accounting Terms You Should Know
    • ← 10 Tips to Perfect Check-Printing in QuickBooks
    • Using Statements in QuickBooks: The Basics →

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Client portal
    Subscribe to newsletter


    Our Services

    We provide Business Services, Tax Services, QuickBooks Services and Services For Individuals.

    Read More

    • Long Island Location
      65 East John St.
      Hicksville, NY, 11801
      sal@salalbanese.com
      Phone: (516)417-8504
      Fax: (516)213-4895
      Cell: (516)987-9850
    • NYC Location
      2200 Broad Hollow Road, suite 203
      Melville, NY 11747
      sal@salalbanese.com
      Phone: (212)714-0064
      Fax: (212)629-9553
      Cell: (516)987-9850

    Client Portal

    Click Here

    Contact Info

    Address: 200 Broad Hollow Road, suite 203
    Melville, NY 11747

    516-679-1964

    516-784-7227

    516-558-0065

    omaida@www.globaltax.info

    Copyright © 2016. All Right Reserved. Powered by: WEB DESIGN YOU

    • Fb
    • linkedin
    MENU
    • Home
    • About
    • Services
      • Services For Individuals
        • Personal Financial Planning
      • Business Services
        • Small Business Accounting
        • Payroll
        • Business Valuation
        • Succession Planning
        • New Business Formation
        • Internal Controls
      • Tax Services
        • Tax Preparation
        • Tax Planning
        • TAX PROBLEMS
          • IRS Audit Representation
          • Non-Filed Tax Returns
          • Back Taxes Owed
          • Payroll Tax Problems
          • IRS Liens
          • IRS Levies
          • IRS Wage Garnishment
          • IRS Seizures
          • Offer In Compromise
          • IRS Payment Plan
          • Innocent Spouse Relief
          • Get Your IRS File
      • QuickBooks Services
        • WHY QUICKBOOKS
        • QUICKBOOKS SETUP
        • QUICKBOOKS TRAINING
        • QUICKANSWERS
        • QuickBooks Tips
        • Buy QuickBooks and Save
    • Newsletter
      • Previous Newsletters
      • News & Weather
    • Financial Guides
      • Life Events
      • Business Strategies
      • Investment Strategies
      • Tax Strategies for Business Owners
      • Tax Strategies for Individuals
      • Frequently Asked Questions
    • Tax Center
      • Track Your Refund
      • Tax Due Dates
      • Tax Rates
      • IRS Tax Forms and Publications
      • Record Retention Guide
      • State Tax Forms
      • 1040 Tax Calculator
      • Marginal and Effective Tax Rates Calculator
    • Resources
      • Financial Calculators
      • News & Weather
      • SecureSend
      • Internet Links
      • Security Measures
      • Recommended Books
    • Client Portal
    • Contact