5 Bookkeeping Terms Every Small Business Owner Needs To Know

Whether you do your own books or get your accountant or bookkeeper to do them for you, you still need to know all the terminology!

Accounting Period: The time period for which financial information is being tracked, usually done monthly.

Accounts Payable: When a company buys goods which need to be paid back quickly, it’s known as accounts payable - basically money owned by a company to creditors.

Accounts Receivable: This is money owed to your business by a customer for products and services.

Arrears: Money owed to you or that you owe which is overdue and unpaid.

Assets: All items owned by a company which helps them run it. This includes money, equipment, buildings, vehicles etc