(But Secretly Google)
Part one: Everyday Terms
Running a business is already a full-time job, and then along comes a never-ending parade of acronyms and accounting terms no one warned you about. P&L? COGS? Reconciliation? Sometimes it feels like you need a translator just to read your reports.
So here it is: your plain-English Bookkeeper’s Dictionary, no jargon and no judgement… just clear definitions for everyday terms and finance-speak you’ve probably encountered (and maybe Googled at 11:57pm).
Accounts Receivable
[uh-kownts ree-see-vuh-buhl] noun
The money your clients owe you.
Translation: “Hurry up and pay me, please.”
Cash Flow
[kas̆h floh] noun
The difference between “I made a sale” and “I can actually pay the bills.”
It’s not about how much money you’ve invoiced, it’s about what’s in the bank.
Good cash flow = breathing room. Bad cash flow = panic scrolling job ads.
Chart of Accounts
[chart uv uh-kownts] noun
A fancy-sounding list that organises your business finances into categories.
Like: income, expenses, assets, liabilities, the “filing system” behind your reports.
Less thrilling than Netflix, but way more useful come tax time.
Depreciation
[dee-pree-shee-ay-shun] noun
The slow and steady decline in value of your gear.
That laptop you bought two years ago? It’s worth a lot less now, and the tax man lets you claim for that.
Expense
[ex-pens] noun
The cost of running your business. Office supplies, subscriptions, snacks you claim as ‘stationery’ and get growled at by your bookkeeper… it all counts.
You spend it, we track it.
Invoice
[in-voys] noun
A nice way of saying “You owe me money.”
Should include: what you did, how much it costs, and when it’s due.
Faster invoicing = faster payments. Promise.
Profit
[pro-fɪt] noun
What’s left after everyone else gets paid.
Yes, you deserve to be on that list too.
Reconciliation
[rek-on-silly-ay-shun] noun
When your bank account and bookkeeping records finally agree on something.
It’s the part where your bookkeeper checks that every cent is where it should be.
Kind of like couple’s therapy for your accounts.
Check out the next post for Part 2: “The Acronyms” – where I’ll decode the alphabet soup of finance-speak (yes, GST and EOFY are finally getting their moment).
