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Key UK accounting terms you need to know

May 26, 2020 3:38 pm

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When it comes to your business accounts it is often better to leave this up to the professionals. Accountants in Cheltenham have studied all there is to know about business accounts and the legalities behind this. Accountants in Cheltenham that cover Gloucestershire and further afield will work with you on many different areas of your business finances. Whilst it is not important for you to know all the in’s and out’s of how this works, there are some key accounting terms that you need to be aware of.

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Accounting Period – this is the period of time that you are tracking your accounts and is most often done on a monthly basis.

Accounts Payable – this is money that is owed by your business by another that has supplied you with services or goods and includes people such as consultants and contractors.

 

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Accounts Receivable – this is money that is owed to your business by another for services or products that you have supplied them with.

Assets – these are items owned by the business that allows them to run and can include everything from computer equipment through to any business vehicles.

Depreciation – this is the reduction in value of your tangible assets.

Gross profit – this is your overall profits when you take away the cost of any sales that you have made.

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