Demystifying small business financial jargon (part 1)
Are you just starting out in small business and baffled by some of the jargon? Here’s a simple explanation of the most common terms you’re likely to come across.
customers that owe you money
suppliers that you owe money to
a creditor that’s unlikely to pay you.
a statement of your business assets and liabilities
recordingthe financial transactions for your business
what your net (after-tax) profit is sometimes called
the point where your income equals your expenses (after that point, you’re making a profit).
a forecast of your revenue and expenses for a specific period
the timing and amount of cash flowing in and out of your business
an asset you put up as security for as loan (e.g. property)
the decrease in value of an asset over time
the value of your ownership in your business (calculated by subtracting your liabilities from your assets)
a cost that stays the same over a period of time
the year from 1 July to 30 June in Australia
the value of your business’ reputation
your business’ profit before tax
the stock you have of the products you sell
a bill you send to your customers and that your suppliers send to you.
any business debt you owe
How we can help
At Scorpion Bookkeeping, we can help you to implement Xero bookkeeping software to help you to easily manage and plan your business finances. We are a Xero-certified partner.
We also provide bookkeeping support services to a diverse range of clients in Victoria, South Australia and New South Wales.
Contact us today for a free, no-obligation consultation to find out how we can help your small business!