Want A Thriving Business? Focus on 10 Basic Accounting Terms everyone should know in Expense Management!
One of the best ways of improving your expense management software is when you actually begin to use them. Say for example expense management and reporting software helps you track and regulate the business costs. And in order to get started in this field there are many terms that the organizations generally get confused with and here are some of the best ways you could actually explore them.
The Revenue: It’s the entire income of the company. The money gained from selling of goods and services or from the selling assets the company generally owns.
The Income Statement: Income statement is the process of showing the economic activity in a given period of time, be it yearly, quarterly or monthly. In short Revenue – Costs = Profit or loss.
The Accounts Payable: This is an account that is generally used to track down the outstanding bills from all the suppliers, vendors and consultants along with the other resources from whom the company has been buying the goods.
Costs of the goods being sold: Purchase or the manufacturing price of all goods and services the organization has been planning to sell to the customer.
Equity: Resources being invested in the company by the owners. In a smaller business organization this is generally shown as a capital account, and in the larger firms it is generally shown as the shares in the stock.
The balance sheets: This is generally said to be a snap shot of the company current economic status during a specific time and date. This is called as a balance sheet as the things being owned by the organization must be equal to the claims against the said assets.
Depreciation: The reduced value assets over the time. Each and every asset decreases in the value as the time continues to pass and would here require an immediate replacement. This would here again involve both the major and minor assets.
Equity: Equity is nothing but the resources being invested in the company by its owners. In a smaller business organization this is generally shown up as a capital account and when it comes to the larger firms it is shown as the shares in the stock.
The liabilities: The liabilities are each and everything that the company owns be it loans, the unpaid bills or the bonds.
The Assets: The assets are the things of value belonging to the company. The land, the equipment, vehicles, furniture are some of the best examples for it.
To conclude these were just a few that would help you regulate and track down the expenses of your business organization. So what more would you like to add to the above post. Leave your thoughts in the comments section below.