What's the difference between an accountant and a bookkeeper? What are accounting ratios, accounts receivables and accounts payables? And what exactly does your accountant mean when she says your financial statements need to follow GAAP standards?
Whether you do your own accounting, have an in-house accountant or hire a third party accounting firm, having a grasp on accounting speak can help your business tremendously. Not only will it allow you to understand your numbers better, but it will also help you make wiser business decisions. To help you get started, here are some basic accounting terms small business owners need to know, followed by our reference guides.
To learn more about these accounting terms and what they mean for your business, check out our reference guides:
- What is Accounting?
- Accountant vs. Bookkeeper: What Do They Do for a Business?
- Accounts Receivable: What Small Businesses Need to Know
- Accounts Payable and Your Business: What You Need to Know
- GAAP: Standards & Rules for Accountants
- Finding the Right Accountant for Your Small Business
Editor's Note: Looking for information on accounting software for your business? Use the questionnaire below, and our vendor partners will contact you to provide you with the information and quotes you need:
For information on choosing the best accounting software for your business, check out our buyer's guide: How to Choose an Accounting Software. To see our top picks and a comprehensive list of accounting software providers, check out our roundup: Best Accounting Software for Small Business. Ready to choose an accounting software? Here's a breakdown of our review coverage:
- Quickbooks Online Review: Best Small Business Accounting Software
- Wave Accounting Review: Best Free Accounting Software for Small Business
- Zoho Books Review: Best Accounting Software for Really Small Businesses
- FreshBooks Review: Best Accounting Mobile App for Small Business