Accounting. Just that word alone can send chills down the spine of the most seasoned business person. And we haven’t even begun to talk about the intricacies of the financial world.
Of course, outsourced bookkeepers have a firm grasp of such lingo; after all, it’s part of their specialty. That being said, you’re not the type of individual that likes to be kept out in the dark. You want to learn about the terminology so you can stay in the know and can work with your bookkeeper to get the job done.
With that said, this article talks about some of the more common bookkeeping terms that you’ll need to know. Keep reading to find out more!
Accounting Cycle: A Common Term for Outsourced Bookkeepers
Everything has its cycle, and accounting is no exception to the rule. When you hear bookkeepers talk about an accounting cycle, they’re referring to the period that it takes to close one accounting statement and begin another. Usually, this involves things like identifying and recording transactions, making adjusting entries, and creating financial statements.
General Ledger: All About the Transactions
This common term is relatively simple in its meaning. The general ledger is the total amount of financial transactions your business has made. This includes both your debit and credit transactions.
Chart of Accounts: Your Key to Reading the General Ledger
Just knowing that a general ledger exists is not enough; you have to be able to read it so you can see your transactions. the chart of accounts serves that purpose. It acts as a sort of legend or key that shows you all of the accounts that you might credit or debit when a transaction occurs. With it, you can read each transaction your business made for that accounting cycle.
Close the Books: For When It’s All Said and Done
This one may be a pretty easy term for you to catch on to, and one of the favorites among bookkeepers. In the olden days, bookkeepers and other accountants did their work in a book (hence their title). When a bookkeeper stated that they had “closed the books” they meant that they had filled out all of the needed information in the accounting cycle to prepare final statements.
The term as a whole still stands today, except we now place everything into a computer instead.
We’re Here to Lend a Hand
Now that you’ve got some of the lingo used by outsourced bookkeepers in the bag, you’ll want to find a way to get your hands on some qualified bookkeepers that can keep your business running at its best. With us at your side, you won’t have to worry about a thing.
At The Accfin Group, we pride ourselves on offering the best possible services for all of our clients. We can help your company with bookkeeping services, controller services, CEO services, payroll and HR services, and so much more. Simply reach out to us whenever you’re ready to get started. We look forward to the chance to help you succeed!