At Numbers and Beyond we appreciate that accounting jargon can be off-putting for our clients. So we keep it to a minimum and, when we do need to use it, we explain its meaning. Here are a few accounting terms that you may find useful:
– A financial report showing what the business is worth at one point in time. A standard company balance sheet has three parts, assets, liabilities and ownership equity or capital.
– A process for recording, storing and retrieving financial transactions for your business.
Cash flow statement
– A financial report that provides an overview of the cash inflows and outflows of the business during a certain period of time.
KEY PERFORMANCE INDICATORS (KPIs)
– A set of quantifiable measures used to evaluate factors that are crucial to the success of an organization.
– Timely financial and statistical information provided to business managers so that they can make day-to-day and short-term managerial decisions.
– A legal requirement for all employers to automatically enrol certain staff into a pension scheme and make contributions.
Profit and loss account
– A financial report showing your business’s trading during a given period of time. It shows your business’s income from sales, bank interest, and other income less its expenses.
Real time information (RTI)
– A reporting procedure requiring employers to submit payroll tax information to HMRC each time they pay their employees, rather than just once a year.