Accounting dictionary

Learn about common accounting terms and phrases

A

  1. Accountancy
  2. Accounting equation
  3. Accounting principles
  4. Accounting system
  5. Accounting year
  6. Accounts payable
  7. Accounts receivable
  8. Accrual accounting
  9. Accruals
  10. Administration
  11. Aged debtors report
  12. Allowable expenses
  13. Amortisation
  14. Annual accounting VAT scheme
  15. Annual Investment Allowance (AIA)
  16. Annual report
  17. Appreciation
  18. Arbitrage
  19. Articles of association
  20. Assets
  21. Audit
  22. Audit trail
  23. Auditor's report
  24. Australian Business Number (ABN)
  25. Australian Company Number (ACN)
  26. Average cost
  27. 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. Bank balance
  8. Bank fees
  9. Bank reconciliation
  10. Bank statement
  11. Bankruptcy
  12. Barriers to entry
  13. Barriers to exit
  14. Base period
  15. Benefits in kind
  16. Bond
  17. Bonus
  18. Book value
  19. Bookkeeping
  20. Break-even point
  21. Brick and mortar
  22. Bridging software
  23. Budget
  24. Business angel
  25. Business name
  26. Business structure
  27. Buying rate
  28. 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. Commission
  29. Community interest company (CIC)
  30. Companies Act 2006
  31. Company registration number (CRN)
  32. Company tax
  33. Conservatism principle
  34. Consistency principle
  35. Consumables
  36. Consumer price index (CPI)
  37. Consumer Rights Act 2015 (CRA 2015)
  38. Consumer surplus
  39. Contra account
  40. Contractor
  41. Contribution margin
  42. Copyright
  43. Corporation
  44. Corporation tax
  45. Cost
  46. Cost of goods sold
  47. Cost principle
  48. County court judgement (CCJ)
  49. Credit
  50. Credit card
  51. Credit note
  52. Credit rating
  53. Creditor
  54. Crowdfunding
  55. Currency
  56. Current assets
  57. Current liabilities
  58. Current ratio
  59. Customer Acquisition Cost (CAC)
  60. Customer Lifetime Value (CLTV)
  61. Customs Duty

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. Direct debit
  22. Director
  23. Directors' report
  24. Distance selling
  25. Dividends
  26. Double entry bookkeeping
  27. Down payment
  28. Drawings
  29. Due date
  30. 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. Freelancer
  17. Fringe benefits tax (FBT)
  18. Full disclosure principle

G

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

H

  1. Historical cost
  2. 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. Invoice
  18. Invoice format
  19. Invoice number

J

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

K

  1. Key figure

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. Management accounting
  4. Management buyout (MBO)
  5. Manufacturer
  6. Margin scheme
  7. Markdown
  8. Market share
  9. Market value
  10. Markup
  11. Matching principle
  12. Materiality principle
  13. Memorandum of association
  14. Merchandise
  15. Mergers and acquisitions (M&A)
  16. Monetary policy
  17. Monetary unit principle
  18. Monopoly

N

  1. National Insurance
  2. Near term
  3. Negative amortisation
  4. Net Income After Taxes (NIAT)
  5. Net sales
  6. Net worth
  7. 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. Period end
  15. Periodic stock management
  16. Perpetual stock management
  17. Personal allowance
  18. PESTLE Analysis
  19. Petty cash
  20. Point of sale (POS)
  21. POS system
  22. PP&E
  23. Premium
  24. Prepayments
  25. Price elasticity
  26. Principal payment
  27. Process costing
  28. Product list
  29. Profit & loss statement
  30. Proforma invoice
  31. Project accounting
  32. Provision
  33. Purchase ledger control account
  34. Purchase order
  35. 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. Research and Development (R&D)
  9. Reserves
  10. Residual value
  11. Retailer
  12. Retained earnings
  13. Return on investment (ROI)
  14. Revaluation
  15. Revaluation of creditors/debtors
  16. Revenue recognition principle
  17. Revenues
  18. Reverse charge
  19. Rounding
  20. 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. Social enterprise
  14. Sole trader
  15. Spoilage
  16. Stakeholder
  17. Stamp duty
  18. Standard VAT accounting scheme
  19. Standing order
  20. Statement of account
  21. Statement of cash flows
  22. Statutory accounts
  23. Stock
  24. Stock management
  25. Stockholders' equity
  26. Straight-line depreciation
  27. Structures and Buildings Allowance (SBA)
  28. Subcontractor
  29. Subscription
  30. Subsidiary
  31. Superannuation
  32. Supply and demand
  33. Supply chain
  34. Suspense account
  35. SWIFT/BIC codes
  36. Switching costs
  37. SWOT analysis

T

  1. Tangible assets
  2. Tax accounting
  3. Tax codes
  4. Time period principle
  5. Time Value of Money (TVM)
  6. Touch ID
  7. Trade mark
  8. Trading name
  9. Transaction
  10. Trial balance
  11. 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 registration
  10. VAT relief
  11. VAT report
  12. VAT return
  13. VAT taxable turnover
  14. VAT threshold
  15. Venture capital

W

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

Y

  1. Year end