Ten basic accounting terms you need to know

Accounting and business, like any discipline have their own language and jargon. If you don’t speak the language it’s hard to communicate with other professionals.
When I started working I came from a science and teaching background so accounting was not my strong suit. I had to work at it by asking questions, talking to the accounting staff and getting them to walk me through reports, volunteering to be on local committees where there was a need to read balance sheets and financial reports and buying second-hand accounting textbooks and reading them.
If you’re just starting out as a freelancer, take the time to learn a little bit about accounting. You don’t need to enrol at a university and get a degree but you do need to get your head around some basic terms and practices. My local council offers short courses for small business operators so that can be a good place to look as well.
Whichever approach you take, make sure that it’s in your personal development plan. Remember, if you don’t write it down, it won’t happen.
Here are ten key terms you need to understand for your business so that you can work with your financial advisor or accountant.
Accounting is a critical part of your business and all of these are important as they have implications for the day to day operation of your business as well as ensuring that you keep up with your legal obligations. I’ve avoided anything to do with tax as this will vary widely depending on where your business is based. I’ve also left out anything to do with salaries and payroll for the same reason.

Accounting Terms You Need To Know

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