Accounting dictionary

Learn about common accounting terms and phrases

A

  1. Abnormal loss
  2. Abridged accounts
  3. Absorbed overhead
  4. Accountancy
  5. Accounting cushion
  6. Accounting equation
  7. Accounting principles
  8. Accounting system
  9. Accounting year
  10. Accounts payable
  11. Accounts receivable
  12. Accrual accounting
  13. Accruals
  14. Acquisition
  15. Activity-based costing (ABC)
  16. Administration
  17. Aged debtors report
  18. Allowable expenses
  19. Amortisation
  20. Annual accounting VAT scheme
  21. Annual Investment Allowance (AIA)
  22. Annual report
  23. Appreciation
  24. Arbitrage
  25. Articles of association
  26. Assets
  27. Audit
  28. Audit trail
  29. Auditor's report
  30. Australian Business Number (ABN)
  31. Australian Company Number (ACN)
  32. Authorised Share Capital
  33. Average cost
  34. Average Revenue Per User (ARPU)

B

  1. B Corp
  2. B2B
  3. B2C
  4. Bad debt account
  5. Bad debt reserve
  6. Balance sheet
  7. Balloon payment
  8. Bank balance
  9. Bank fees
  10. Bank reconciliation
  11. Bank statement
  12. Bankruptcy
  13. Barriers to entry
  14. Barriers to exit
  15. Base period
  16. Benefits in kind
  17. Bond
  18. Bonus
  19. Book value
  20. Bookkeeping
  21. Break-even point
  22. Brick and mortar
  23. Bridging software
  24. Budget
  25. Business angel
  26. Business name
  27. Business plan
  28. Business rates
  29. Business structure
  30. Buying rate
  31. By-products

C

  1. C-Suite
  2. Capital
  3. Capital allowance
  4. Capital Gains Tax
  5. Capital investment
  6. Card machine
  7. Card payment
  8. Card reader
  9. Carrying cost
  10. Cash
  11. Cash accounting
  12. Cash accounting VAT scheme
  13. Cash budget
  14. Cash discount
  15. Cash flow
  16. Cash flow forecast
  17. Cash on delivery (COD)
  18. Chargeback
  19. Charity
  20. Chart of accounts
  21. Chip and PIN
  22. CIS
  23. Click and mortar
  24. Closing balance
  25. Cloud
  26. Cold-calling
  27. Collateral
  28. Commercial invoice
  29. Commission
  30. Community interest company (CIC)
  31. Companies Act 2006
  32. Company registration number (CRN)
  33. Company tax
  34. Conservatism principle
  35. Consistency principle
  36. Consumables
  37. Consumer
  38. Consumer price index (CPI)
  39. Consumer Rights Act 2015 (CRA 2015)
  40. Consumer surplus
  41. Contra account
  42. Contractor
  43. Contribution margin
  44. Copyright
  45. Corporation
  46. Corporation tax
  47. Cost
  48. Cost of goods sold
  49. Cost principle
  50. County court judgement (CCJ)
  51. Credit
  52. Credit card
  53. Credit derivative
  54. Credit note
  55. Credit rating
  56. Creditor
  57. Crowdfunding
  58. Currency
  59. Current assets
  60. Current liabilities
  61. Current ratio
  62. Customer Acquisition Cost (CAC)
  63. Customer Lifetime Value (CLTV)
  64. Customs Duty
  65. Customs union
  66. Cycle billing

D

  1. Dangerous asset
  2. Data Protection Act
  3. Debenture
  4. Debit
  5. Debit note
  6. Debt
  7. Debt financing
  8. Debt ratio
  9. Debtor
  10. Deductible VAT
  11. Default
  12. Deferred expenditure
  13. Deferred revenue
  14. Deferred tax
  15. Delivery note
  16. Department
  17. Deposit
  18. Deposit Interest Retention Tax (DIRT)
  19. Depreciation
  20. Depreciation methods
  21. Digital signature
  22. Diminishing marginal utility
  23. Direct debit
  24. Director
  25. Directors' report
  26. Dissolution
  27. Distance selling
  28. Dividends
  29. Double entry bookkeeping
  30. Down payment
  31. Drawings
  32. Due date
  33. Due diligence

E

  1. E-commerce
  2. EBIT
  3. EBITDA
  4. Economic entity principle
  5. Economies of scale
  6. Economies of scope
  7. Electronic invoicing
  8. Ending inventory
  9. Entrepreneur
  10. Entrepreneurs' Relief
  11. EORI number
  12. Equity financing
  13. Estimate
  14. Exchange gain or loss
  15. Excise Duty
  16. Exit strategy
  17. Expense
  18. Export VAT

F

  1. FIFO
  2. Finance charge
  3. Financial benchmarking
  4. Financial instrument
  5. Financial statement
  6. Finished goods
  7. Fintech
  8. Fiscal policy
  9. Fixed assets
  10. Fixed cost
  11. Fixed exchange rates
  12. Flat rate VAT scheme
  13. FOB destination
  14. FOB shipping point
  15. Franchising
  16. Free trade agreement (FTA)
  17. Freelancer
  18. Fringe benefits tax (FBT)
  19. Full disclosure principle
  20. Full Payment Submission (FPS)

G

  1. Gains
  2. GDP
  3. GDPR
  4. General ledger
  5. Glocalisation
  6. Going concern principle
  7. Golden parachute
  8. Goodwill
  9. Grant
  10. Gross profit margin
  11. Group consolidation
  12. Growth rate
  13. GST

H

  1. Harmonized system
  2. Historical cost
  3. Household income

I

  1. IBAN
  2. IFRS standards
  3. Impairment
  4. Import duty
  5. Import VAT
  6. Imprest system
  7. Income statement
  8. Income Tax
  9. Individual Savings Account (ISA)
  10. Inflation
  11. Initial Public Offering (IPO)
  12. Insolvency
  13. Intangible assets
  14. Intellectual property
  15. Interest
  16. Inventory
  17. Investor
  18. Invoice
  19. Invoice format
  20. Invoice number

J

  1. Job costing
  2. Joint products
  3. Joint venture
  4. Joint venture for VAT
  5. Journal

K

  1. Key figure
  2. Key ratio

L

  1. Land and Buildings Transaction Tax
  2. Land Transaction Tax
  3. Late fees
  4. Legal tender
  5. Liabilities
  6. Lifetime Individual Savings Account
  7. LIFO
  8. Limited company
  9. Limited liability
  10. Liquidation
  11. Liquidity
  12. Loan
  13. Losses

M

  1. M-commerce
  2. Making Tax Digital
  3. Managed service company (MSC)
  4. Management accounting
  5. Management buyout (MBO)
  6. Manufacturer
  7. Margin scheme
  8. Marginal benefit
  9. Marginal cost
  10. Markdown
  11. Market share
  12. Market value
  13. Markup
  14. Matching principle
  15. Materiality principle
  16. Memorandum of association
  17. Merchandise
  18. Merchant acquirer
  19. Mergers and acquisitions (M&A)
  20. Mezzanine financing
  21. Mobile payments
  22. Modified invoice
  23. Monetary policy
  24. Monetary unit principle
  25. Monopoly

N

  1. National Insurance
  2. Near term
  3. Negative amortisation
  4. Net income
  5. Net Income After Taxes (NIAT)
  6. Net sales
  7. Net worth
  8. Nominal ledger

O

  1. OCR system
  2. Off-balance sheet (OBS)
  3. Open items creditor
  4. Open items debtor
  5. Opening balance
  6. Outsourcing
  7. Overhead
  8. Owner’s equity

P

  1. Packing note
  2. Paper profit
  3. Par value
  4. Partial payment
  5. Partnership
  6. Partnership agreement
  7. Patent
  8. Payback period
  9. PAYE
  10. Payment guarantee
  11. Payment on account
  12. Payment receipt
  13. Payment terms
  14. Payroll
  15. Payroll tax
  16. Pension
  17. Period end
  18. Periodic stock management
  19. Perpetual stock management
  20. Personal allowance
  21. Personal service company (PSC)
  22. PESTLE Analysis
  23. Petty cash
  24. Point of sale (POS)
  25. POS system
  26. PP&E
  27. Premium
  28. Prepayments
  29. Price elasticity
  30. Pricing strategy
  31. Principal payment
  32. Process costing
  33. Producer surplus
  34. Product list
  35. Profit & loss statement
  36. Proforma invoice
  37. Project accounting
  38. Provision
  39. Purchase ledger control account
  40. Purchase order
  41. Purchasing power

Q

  1. Quantitative easing
  2. Quick ratio
  3. Quotation

R

  1. Raw materials
  2. Recurring invoice
  3. Reducing balance depreciation
  4. Refund or Reimbursement
  5. Registered share
  6. Reimbursable expense
  7. Reliability principle
  8. Reminder letter
  9. Remittance advice
  10. Request for proposal (RFP)
  11. Research and Development (R&D)
  12. Reserves
  13. Residual value
  14. Retailer
  15. Retained earnings
  16. Return on investment (ROI)
  17. Revaluation
  18. Revaluation of creditors/debtors
  19. Revenue recognition principle
  20. Revenues
  21. Reverse charge
  22. Rounding
  23. Royalties

S

  1. Sale of Goods Act 1979 (SOGA)
  2. Sales
  3. Sales discount
  4. Sales ledger control account
  5. Sales turnover
  6. Salvage value
  7. Seasonality
  8. Self assessment
  9. SEPA
  10. Share
  11. Shareholder
  12. Shareholders' agreement
  13. Simplified invoice
  14. Single market
  15. Social enterprise
  16. Sole trader
  17. Solvency
  18. Spoilage
  19. Stakeholder
  20. Stamp duty
  21. Standard VAT accounting scheme
  22. Standing order
  23. Statement of account
  24. Statement of cash flows
  25. Statutory accounts
  26. Stock
  27. Stock management
  28. Stockholders' equity
  29. Straight-line depreciation
  30. Structures and Buildings Allowance (SBA)
  31. Subcontractor
  32. Subscription
  33. Subsidiary
  34. Superannuation
  35. Supply and demand
  36. Supply chain
  37. Suspense account
  38. SWIFT/BIC codes
  39. Switching costs
  40. SWOT analysis

T

  1. Tangible assets
  2. Tariff
  3. Tax accounting
  4. Tax codes
  5. Tax file number
  6. Tax point
  7. Time period principle
  8. Time Value of Money (TVM)
  9. Touch ID
  10. Trade mark
  11. Trading name
  12. Transaction
  13. Trial balance
  14. Turnover

U

  1. UK GAAP
  2. Unbundling
  3. Underwriting
  4. Unique Selling Point (USP)
  5. Unique Taxpayer Reference (UTR)
  6. Unlimited liability
  7. Useful life

V

  1. Variable cost
  2. Variance
  3. VAT
  4. VAT Division
  5. VAT exemption
  6. VAT group
  7. VAT invoice
  8. VAT number
  9. VAT rate
  10. VAT registration
  11. VAT relief
  12. VAT report
  13. VAT return
  14. VAT taxable turnover
  15. VAT threshold
  16. Venture capital
  17. Virtual terminal

W

  1. Wholesaler
  2. Withholding tax
  3. Word of mouth (WOM)
  4. Work in process
  5. Working capital
  6. Write-off

Y

  1. Year end