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!
the amount you add on to the cost of a product before you sell it
your net (after-tax) profit after you’ve deducted all your eligible expenses
an optional bank account facility that allows you to withdraw more funds than you have in your account up to a pre-set limit
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
your business sales/income
a physical count of your stock/inventory on hand and its value
an invoice that lists the selling price of supplied goods or services and the GST component of the sale
the amount of income your business generates before expenses
an expense that fluctuates over time
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!