- Account Payable - Accounts payable is our short-term obligation to pay our suppliers for products and services which we have already purchased on credit.
- Accounting - The process of identifying, measuring and communicating financial information to enable informed judgements and decisions.
- Accounts Receivable - Accounts receivable is the money that your customers owe you against goods or services provided to him on credit. In terms of business, it refers to the outstanding invoices by the clients of a company.
- AGI – Adjusted Gross Income - Adjusted Gross Income is an individual's total gross income after the deduction of allowable expenses.
- An IRA - An IRA (individual retirement account or individual retirement arrangement) is a tax-favored savings account designed to help individuals save and grow funds for their retirement.
- Balance Sheet - A Balance Sheet is a financial statement which projects the financial position of a business at the end of the accounting period.
- Bank Book - Bank Book is also a subsidiary book similar to cash book which records all the receipts and payments made through the bank. It is also known as Bank Journal.
- Bank Reconciliation Statement - A Bank Reconciliation Statement is a document that reconciles the bank transactions with our financial records. It helps us to find/resolve any discrepancy.
- Break-Even Point (BEP) - Break-Even Point means to calculate financial feasibility for launching a new product or starting new ventures.
- Budget Statement - Budget is an estimate of revenues and expenses predefined for a specified period. It reflects company's future financial conditions and helps to achieve financial goals.
- Cash Book - A Cash Book is a subsidiary book in which records the cash/bank receipts and cash/bank payments made during a specific period in a chronological order.
- Cash Flow Statement - Cash Flow Statement or Statement of Cash Flow is a Financial Statement, which shows the flow of cash in and out of an organization.
- COGS - the amount of money spent by a company on its labor, materials, and overheads to manufacture/purchase products of the goods that are sold to customers during the year.
- Composition Scheme Under GST 2017 - Under the Composition Scheme, a registered taxpayer, whose aggregate turnover has not exceeded Rs. 75 Lakh in the preceding financial year will pay the tax quarterly at a rate more than 1%, 2.5% and 0.5% for the manufacturer, restaurant sector, and other suppliers respectively.
- Cost Sheet - The bifurcation of total cost presented in the form of a statement is called a Cost Sheet.
- Debtor - Sale of goods on credit to our customers makes the customer our Debtor. A customer becomes the debtor of that amount for which goods are sold on credit.
- GAAP - Generally Accepted Accounting Principles is a specific set of guidelines to be followed by public sector companies for preparing their financial statements.
- Income Statement/Profit & Loss Statement - An income statement or profit and loss statement, one of the financial statements of a company which shows a company’s revenues and expenses during a period.
- Input Tax Credit or ITC under GST - Input Tax Credit or ITC means the credit of GST tax (IGST/CGST/SGST) charged on the supply of any goods and or services that are used or intended to be used in furtherance of the sale of goods and services and includes the tax payable under reverse charge.
- Inventory Control - Inventory Control is the Systematic management and monitoring of inventory.
- Inventory - Inventory is a company's stock on hand either purchased from others or produced by self for the purpose of resale.
- Invoice - Invoice is a document issued by a seller to the buyer for a transaction. It consists of details of services or goods supplied along with rates of services provided or per unit price of goods.
- MAGI – Modified Adjusted Gross Income - t is calculated by taking your AGI (Adjusted Gross Income) and adding back several deductions. These deductions can be student loan deductions, Deductions of IRA contributions, foreign income, deductions of foreign-housing, adoption expenses and deductions for higher-education costs.
- Nominal Account - Nominal accounts are the accounts that report revenues, expenses, gains, and losses.
- Payroll - Maintaining financial records of employees like wages, salaries, deductions, bonuses, holidays, leaves, sick leave, etc. are called Payroll.
- Personal Account - The elements or accounts which represent persons and organizations. Personal Accounts are three types of natural, artificial and representative accounts.
- Petty Cash Book - A Petty Cash Book is a document in which all petty or small daily routine payments made from petty cash fund are systematically recorded.
- Purchase Book - Purchase Book is a subsidiary book which records the transactions of credit purchase of goods for trading purpose. Cash purchases are recorded in the Cash Book.
- Real Account - Accounts relating to properties or assets are called Real Accounts. You have to maintain a separate account for each asset.
- Reverse Charge Under GST - Reverse Charge means the liability to pay tax by the recipient of good or services or both instead of the supplier under sub-section (3)/(4) of Section 9 of CGST Act or under sub-section (3)/(4) of Section 5 of IGST Act.
- Trial Balance - Trial Balance is a document which records the closing balances of all the ledger accounts at the end of accounting period.