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. Asset-backed commercial paper
  27. Assets
  28. Audit
  29. Audit trail
  30. Auditor's report
  31. Australian Business Number (ABN)
  32. Australian Company Number (ACN)
  33. Authorised Share Capital
  34. Average cost
  35. 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. Bearer share
  17. Benefits in kind
  18. Bond
  19. Bonus
  20. Book value
  21. Bookkeeping
  22. Break-even point
  23. Brick and mortar
  24. Bridging software
  25. Budget
  26. Business angel
  27. Business name
  28. Business plan
  29. Business rates
  30. Business structure
  31. Buying rate
  32. 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. Commercial paper
  30. Commission
  31. Community interest company (CIC)
  32. Companies Act 2006
  33. Company registration number (CRN)
  34. Company tax
  35. Conservatism principle
  36. Consistency principle
  37. Consumables
  38. Consumer
  39. Consumer price index (CPI)
  40. Consumer Rights Act 2015 (CRA 2015)
  41. Consumer surplus
  42. Contra account
  43. Contractor
  44. Contribution margin
  45. Copyright
  46. Corporation
  47. Corporation tax
  48. Cost
  49. Cost accounting
  50. Cost of goods sold
  51. Cost pool
  52. Cost principle
  53. County court judgement (CCJ)
  54. Credit
  55. Credit card
  56. Credit derivative
  57. Credit note
  58. Credit rating
  59. Creditor
  60. Crowdfunding
  61. Currency
  62. Current assets
  63. Current liabilities
  64. Current ratio
  65. Customer Acquisition Cost (CAC)
  66. Customer Lifetime Value (CLTV)
  67. Customs Duty
  68. Customs union
  69. 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 accounting
  4. Financial benchmarking
  5. Financial instrument
  6. Financial statement
  7. Finished goods
  8. Fintech
  9. Fiscal policy
  10. Fiscal year
  11. Fixed assets
  12. Fixed cost
  13. Fixed exchange rates
  14. Flat rate VAT scheme
  15. FOB destination
  16. FOB shipping point
  17. Franchising
  18. Free trade agreement (FTA)
  19. Freelancer
  20. Fringe benefits tax (FBT)
  21. Full disclosure principle
  22. 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. Instalment payments
  14. Intangible assets
  15. Intellectual property
  16. Interest
  17. Inventory
  18. Investor
  19. Invoice
  20. Invoice format
  21. 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. Lean accounting
  5. Legal tender
  6. Liabilities
  7. Lifetime Individual Savings Account
  8. LIFO
  9. Limited company
  10. Limited liability
  11. Liquidation
  12. Liquidity
  13. Loan
  14. 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. Nil VAT Return
  9. 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. Promissory note
  39. Provision
  40. Purchase ledger control account
  41. Purchase order
  42. Purchasing power

Q

  1. Quantitative easing
  2. Quick ratio
  3. Quotation

R

  1. Raw materials
  2. Recurring expense
  3. Recurring invoice
  4. Reducing balance depreciation
  5. Refund or Reimbursement
  6. Registered share
  7. Reimbursable expense
  8. Reliability principle
  9. Reminder letter
  10. Remittance advice
  11. Request for proposal (RFP)
  12. Research and Development (R&D)
  13. Reserves
  14. Residual value
  15. Retailer
  16. Retained earnings
  17. Return on investment (ROI)
  18. Revaluation
  19. Revaluation of creditors/debtors
  20. Revenue recognition principle
  21. Revenues
  22. Reverse charge
  23. Rounding
  24. 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. SME
  16. Social enterprise
  17. Sole trader
  18. Solvency
  19. Spoilage
  20. Stakeholder
  21. Stamp duty
  22. Standard costing
  23. Standard VAT accounting scheme
  24. Standing order
  25. Statement of account
  26. Statement of cash flows
  27. Statutory accounts
  28. Stock
  29. Stock management
  30. Stockholders' equity
  31. Straight-line depreciation
  32. Structures and Buildings Allowance (SBA)
  33. Subcontractor
  34. Subscription
  35. Subsidiary
  36. Superannuation
  37. Supply and demand
  38. Supply chain
  39. Suspense account
  40. SWIFT/BIC codes
  41. Switching costs
  42. SWOT analysis

T

  1. Tangible assets
  2. Tariff
  3. Tax accounting
  4. Tax base
  5. Tax codes
  6. Tax file number
  7. Tax point
  8. Time period principle
  9. Time Value of Money (TVM)
  10. Touch ID
  11. Trade mark
  12. Trading name
  13. Transaction
  14. Transaction fee
  15. Trial balance
  16. 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 margin scheme
  9. VAT MOSS
  10. VAT number
  11. VAT rate
  12. VAT registration
  13. VAT relief
  14. VAT report
  15. VAT return
  16. VAT taxable turnover
  17. VAT threshold
  18. Venture capital
  19. 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