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Demystifying small business financial jargon (part 2)

Yesterday, we looked at some of the financial jargon you’re likely to come across in small business There’s plenty more!

  • mark up

the amount you add on to the cost of a product before you sell it

  • net profit

your net (after-tax) profit after you’ve deducted all your eligible expenses

  • overdraft

an optional bank account facility that allows you to withdraw more funds than you have in your account up to a pre-set limit

  • overheads

the fixed costs of your business (such as rent if you have a physical retail store)

  • plant and equipment

the operating assets of your business that could include machinery, vehicles, computers and furniture

  • profit and loss statement

a financial statement showing your business income, expenses and profit or loss for a specific time period (also called an income statement)

  • return on investment (ROI)

the net profit of your business divided by the amount you have invested in it

  • revenue

your business sales/income

  • stocktake

a physical count of your stock/inventory on hand and its value

  • tax invoice

an invoice that lists the selling price of supplied goods or services and the GST component of the sale

  • turnover

the amount of income your business generates before expenses

  • variable cost

an expense that fluctuates over time

  • working capital

the amount of cash you have available to meet your day-to-day business expenses

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!

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PO Box 1752

Virginia, SA 5120

33 Warwick Street

Walkerville, SA 5081

Shop 4, 6-14 Metro Parade

Mawson Lakes, SA 5095

Unit 6, 33 Murray Street

Nuriootpa, SA 5355

Tel: 1300 911 571

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