An accountant in South Orlando may use words that will leave you feeling confused. This is due to the fact that accounting terminology is difficult to understand. A person not familiar with their jargon will have a hard time understanding it.
Therefore, it’s advised that before going to see an accountant you should learn the meaning of the most commonly used words spoken by the accountant in South Orlando.
South Orlando Accounting Terminology
The accountant in South Orlando will explain to you what each term means, however, understanding their meaning prior to going will help you comprehend the accounting process. Following is a list of words that accountants often use when explaining the accounting process:
In accounting, there are two types of assets. They are known as fixed assets and current assets. Whereas, fixed assets refers to buildings and equipments. Fixed assets are assets that help the company function and running effectively. A business converts current assets into money, then deposits the money into the bank, and later uses it for their business. Unlike current assets, fixed assets are not immediately converted into money.
South Orlando Accounting Cycle
This term refers to opening the accounting books at the beginning of the fiscal year to closing at the end of the year.
A list of suppliers your company owes money to and deals with on an on-going basis.
The accountant in South Orlando will use this term to explain the gains, sales, and income your business generated.
This is a summary of how your business is doing financially. The balance sheet, prepared at the end of the year, shows all liabilities, equity, and assets.
The debtors are all the suppliers and people that owe your business money.
Debits include the costs and expenses your business incurs.
Income refers to the sale of goods and services and any revenue your company receives through discounts, interests, and any other profit generated. This includes profit generated from things not related to the sale of goods and services.
The accountant in South Orlando may use this term to describe the loans your business owes and needs to pay off within the current fiscal year. There are two types of liabilities. One is current liability and the other is long-term liability. A current liability needs to be paid quickly, while a long-term liability can be paid off after 12 months or longer depending on the loan.
This term just refers to the difference between cost of sales and sales.
Expenditure or Expenses
These expenses are the direct costs a business has to pay in order to produce products or services to sell. These expenses include utility bills and any other cost that keeps a business running.
Net Loss, Net Profit, and Gross Profit
Net loss is calculated by taking the value of expenses and subtracting them from sales. Net profit is the amount left after the expenses have been subtracted from the gross profit. The gross profit is the balance of the trading account and includes such aspects as assets and stock.
After you have familiarized yourself with the accounting jargon, you can go see the accountant in South Orlando. If you still have questions regarding these terms, then the accountant in South Orlando will be glad to explain them to you.
If you need more information about our South Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.