Plan your expenses and deductions strategically each year
Egestas tincidunt ipsum in leo suspendisse turpis ultrices blandit augue eu amet vitae morbi egestas sed sem cras accumsan ipsum suscipit duis molestie elit libero malesuada lorem ut netus sagittis lacus pellentesque viverra velit cursus sapien sed iaculis cras at egestas duis maecenas nibh suscipit duis litum molestie elit libero malesuada lorem curabitur diam eros.
- Morbi fringilla molestie magna sed dictum. Praesent pharetra turpis augue.
- Cras mi purus, viverra vitae felis sit amet, tincidunt fringilla lorem.
- non mattis urna ex nec sem. Donec varius diam et suscipit venenati proin tincidunt
- Quisque euismod posuere lacus sit amet volutpat. Praesent vel imperdiet
Maintain accurate and organized financial records for easy reporting
Tincidunt pharetra at nec morbi senectus ut in lorem senectus nunc felis ipsum vulputate enim gravida ipsum amet lacus habitasse eget tristique nam molestie et in risus sed fermentum neque elit eu diam donec vitae ultricies nec urna cras congue et arcu nunc aliquam at.
Talk to a tax professional for expert guidance
At mattis sit fusce mattis amet sagittis egestas ipsum nunc scelerisque id pulvinar sit viverra euismod. Metus ac elementum libero arcu pellentesque magna lacus duis viverra pharetra phasellus eget orci vitae ullamcorper viverra sed accumsan elit adipiscing dignissim nullam facilisis aenean tincidunt elit. Non rhoncus ut felis vitae massa mi ornare et elit. In dapibus.
- Morbi fringilla molestie magna sed dictum. Praesent pharetra turpis augue.
- Cras mi purus, viverra vitae felis sit amet, tincidunt fringilla lorem.
- non mattis urna ex nec sem. Donec varius diam et suscipit venenati proin tincidunt
- Quisque euismod posuere lacus sit amet volutpat. Praesent vel imperdiet
Personalized Marketing: AI helps in analyzing customer data to create personalized marketing campaigns
At mattis sit fusce mattis amet sagittis egestas ipsum nunc. Scelerisque id pulvinar sit viverra euismod. Metus ac elementum libero arcu pellentesque magna lacus duis viverra. Pharetra phasellus eget orci vitae ullamcorper viverra sed accumsan. Elit adipiscing dignissim nullam facilisis aenean tincidunt elit. Non rhoncus ut felis vitae massa. Elementum elit ipsum tellus hac mi ornare et elit. In dapibus.
“Amet pretium consectetur dui aliquam. Nisi quam facilisi consequat felis sit elit dapibus ipsum nullam est libero pulvinar purus et risus facilisis”
Use accounting and tax software to make management easier
Placerat dui faucibus non accumsan interdum auctor semper consequat vitae egestas malesuada quam aliquam est ultrices enim tristique facilisis est pellentesque lectus ac arcu bibendum urna nisl pharetra bibendum felis senectus dolor commodo quam elementum sapien suscipit qat non elit sagittis aliquam a cursus praesent diam lectus tellus mi lobortis in amet ac imperdiet feugiat tristique nulla eros mauris id aenean a sagittis et pellentesque integer ultricies sit non habitant in cras posuere dolor fames.
Essential Bookkeeping Terms Every Business Owner Should Know
Bookkeeping doesn’t have to be overwhelming—but if you’ve ever found yourself nodding along in a meeting while quietly Googling “what is accounts receivable?” you’re not alone.
Understanding key bookkeeping terms empowers you to make smarter decisions, communicate clearly with your accountant or bookkeeper, and stay in control of your business finances.
Here’s a breakdown of the most essential bookkeeping terms every business owner should know—no accounting degree required.
1. Accounts Payable (AP)
Money your business owes to vendors or suppliers for products or services received. Think: bills you need to pay.
Example: That outstanding invoice from your graphic designer? It’s in your accounts payable.
2. Accounts Receivable (AR)
Money owed to your business by customers or clients. Invoices you’ve sent but haven’t been paid yet fall into this category.
Example: You’ve completed a project and invoiced your client, but they haven’t paid yet—it’s AR until they do.
3. Assets
Everything your business owns that has value—cash, inventory, equipment, even intellectual property.
Types include:
- Current Assets: Cash or anything you’ll convert to cash within a year
- Fixed Assets: Long-term investments like machinery or real estate
4. Liabilities
Everything your business owes—loans, credit card balances, unpaid bills, or taxes due.
Types include:
- Current Liabilities: Due within the year
- Long-Term Liabilities: Due in more than one year
5. Equity
The value of your ownership in the business, calculated as:
Assets - Liabilities = Equity
Also referred to as “owner’s equity” or “net worth.”
6. Revenue
The total income your business earns from sales of products or services—before any expenses are deducted.
Also called: Gross Income or Sales
7. Expenses
The costs of doing business. These include things like rent, software, utilities, subscriptions, and payroll.
Pro tip: Categorize expenses accurately to make tax time easier and more efficient.
8. Profit & Loss Statement (P&L)
A financial report that shows your revenue, expenses, and profit over a period of time. Also known as an income statement.
It answers: “Is my business making money?”
9. Cash Flow
The movement of money in and out of your business. You can be profitable and still struggle if cash isn’t flowing smoothly.
Understanding cash flow helps you plan for future expenses and avoid surprises.
10. General Ledger
The complete record of all financial transactions in your business. It’s the backbone of your bookkeeping system.
Your reports (like P&L or balance sheet) are pulled from this ledger.
11. Chart of Accounts (COA)
A categorized list of every type of account your business tracks—assets, liabilities, revenue, and expenses.
It keeps everything organized and easy to manage.
12. Reconciliation
The process of comparing your bookkeeping records with your bank or credit card statements to make sure everything matches up.
Done monthly, it helps catch errors, missed entries, or potential fraud.
Final Thoughts
Understanding basic bookkeeping terms gives you the confidence to manage your business finances, communicate with your financial team, and grow with intention.
You don’t have to become a bookkeeper—but knowing the language helps you lead like a pro.
Need help with your bookkeeping? We’re here for you.
Whether you have questions or want to see if we’re the right fit, let’s start a conversation.
Need help? Let’s talk.
We say “need help,” but we don’t want to leave you hanging. Whether you’ve got questions, want to learn more about what we do, or just want to see if we’re the right fit for your business—we’re here for you.
👉 Reach out here, give us a call at (877) 972-9284, or email us at info@shbsusa.com. Let’s start a conversation.