Accounting dictionary

Learn about common accounting terms and phrases

A

  1. Accountancy
  2. Accounting cushion
  3. Accounting equation
  4. Accounting principles
  5. Accounting system
  6. Accounting year
  7. Accounts payable
  8. Accounts receivable
  9. Accrual accounting
  10. Accruals
  11. Acquisition
  12. Activity-based costing (ABC)
  13. Administration
  14. Aged debtors report
  15. Allowable expenses
  16. Amortisation
  17. Annual accounting VAT scheme
  18. Annual Investment Allowance (AIA)
  19. Annual report
  20. Appreciation
  21. Arbitrage
  22. Articles of association
  23. Assets
  24. Audit
  25. Audit trail
  26. Auditor's report
  27. Australian Business Number (ABN)
  28. Australian Company Number (ACN)
  29. Authorised Share Capital
  30. Average cost
  31. 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 rates
  28. Business structure
  29. Buying rate
  30. 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 ratio
  8. Debtor
  9. Deductible VAT
  10. Default
  11. Deferred expenditure
  12. Deferred revenue
  13. Deferred tax
  14. Delivery note
  15. Department
  16. Deposit
  17. Deposit Interest Retention Tax (DIRT)
  18. Depreciation
  19. Depreciation methods
  20. Digital signature
  21. Diminishing marginal utility
  22. Direct debit
  23. Director
  24. Directors' report
  25. Distance selling
  26. Dividends
  27. Double entry bookkeeping
  28. Down payment
  29. Drawings
  30. Due date
  31. 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. Estimate
  13. Exchange gain or loss
  14. Excise Duty
  15. Exit strategy
  16. Expense
  17. 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. Mergers and acquisitions (M&A)
  19. Modified invoice
  20. Monetary policy
  21. Monetary unit principle
  22. 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. Open items creditor
  3. Open items debtor
  4. Opening balance
  5. Outsourcing
  6. Overhead
  7. Owner’s equity

P

  1. Packing note
  2. Par value
  3. Partial payment
  4. Partnership
  5. Patent
  6. Payback period
  7. PAYE
  8. Payment guarantee
  9. Payment on account
  10. Payment receipt
  11. Payment terms
  12. Payroll
  13. Payroll tax
  14. Pension
  15. Period end
  16. Periodic stock management
  17. Perpetual stock management
  18. Personal allowance
  19. Personal service company (PSC)
  20. PESTLE Analysis
  21. Petty cash
  22. Point of sale (POS)
  23. POS system
  24. PP&E
  25. Premium
  26. Prepayments
  27. Price elasticity
  28. Pricing strategy
  29. Principal payment
  30. Process costing
  31. Producer surplus
  32. Product list
  33. Profit & loss statement
  34. Proforma invoice
  35. Project accounting
  36. Provision
  37. Purchase ledger control account
  38. Purchase order
  39. 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. Reliability principle
  6. Reminder letter
  7. Remittance advice
  8. Request for proposal (RFP)
  9. Research and Development (R&D)
  10. Reserves
  11. Residual value
  12. Retailer
  13. Retained earnings
  14. Return on investment (ROI)
  15. Revaluation
  16. Revaluation of creditors/debtors
  17. Revenue recognition principle
  18. Revenues
  19. Reverse charge
  20. Rounding
  21. 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. Spoilage
  18. Stakeholder
  19. Stamp duty
  20. Standard VAT accounting scheme
  21. Standing order
  22. Statement of account
  23. Statement of cash flows
  24. Statutory accounts
  25. Stock
  26. Stock management
  27. Stockholders' equity
  28. Straight-line depreciation
  29. Structures and Buildings Allowance (SBA)
  30. Subcontractor
  31. Subscription
  32. Subsidiary
  33. Superannuation
  34. Supply and demand
  35. Supply chain
  36. Suspense account
  37. SWIFT/BIC codes
  38. Switching costs
  39. 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

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