Bookkeeping & Reporting

Accounts Aging Accounts aging is the report that groups receivables or payables by how long they have been outstanding. Accounts Payable Accounts payable is the money a business owes vendors or suppliers for bills not yet paid. Accounts Receivable Accounts receivable is the money customers owe a business for goods or services already delivered. Accrual Accounting Accrual accounting records income when earned and expenses when incurred, regardless of when cash actually moves. Accrued Expense An accrued expense is a cost that has been incurred but not yet paid or invoiced, so it is recorded before cash leaves the business. Accrued Revenue Accrued revenue is revenue that has been earned but not yet billed or collected. Allowance for Doubtful Accounts Allowance for doubtful accounts is the estimate of receivables that may not be collected. Amortization Amortization is the gradual write-off of certain intangible costs or the scheduled repayment pattern of some debts, depending on context. Bad Debt Expense Bad debt expense is the income-statement cost recognized when some receivables are expected not to be collected. Balance Sheet A balance sheet is the financial statement showing assets, liabilities, and equity at a specific point in time. Bank Reconciliation A bank reconciliation is the process of matching book records to the bank statement and explaining differences. Book vs Tax Basis Book vs tax basis is the difference between accounting numbers prepared for financial reporting and numbers prepared under tax rules.