Essential Terms Every Accounting Professional Should Know

accounting services Sydney CBD

What experts consider simple can be a challenge for beginners. Similar is the case with accounting. And like other areas, mastering accounting services needs you to be familiar with the basic terminology. Knowing these terms can help you work as an accountant or manage the accounting department better.

Balance Sheet: It is an essential business aspect. Balance sheets record accounting assets and formulas at particular points that can be monthly, yearly, or quarterly.

Assets: Assets refer to items that diminish over time or are sold to consumers. This term includes things like investment, cash, property and building, warehouse inventory, supplies, equipment, and account receivable.

General Ledger: It is a bookkeeping ledger section that comprises income statement accounts and balance sheets. In this, all the transactions are recorded, like credit purchases, income losses, sales, and office expenses.

On account/On credit: The term refers to services or products exchanged or sold using credits. In such cases, the seller doesn’t receive instant payments, and depending on the deal, and interest charges may be applicable.

Revenue: Terms revenue and income are used to denote the total amount gathered at a particular point of sale. It includes credit purchases, interest income, cash sales, and subscription fees.

Trade Discount: Based on the goods’ volume the buyer orders, trade discount refers to the %age of discount offered on the actual price. Usually, bigger orders bring higher discounts and, similarly, smaller discounts are applicable for smaller orders.

Loss, profit, gross margin, and trial balance are other terms worth learning. However, with Sydney CBD accounting services by your side, you need not worry about efficiency and quality of work.