Balance Sheet
A statement listing a business's assets, liabilities, and net worth, or equity.

Account
A collection of financial information grouped according to customer or purpose.

Bookkeeping
The task of recording the amount, date, and source of all business revenues and expenses. Bookkeeping is essentially the starting point of the accounting process. Only with accurate bookkeeping numbers can meaningful accounting be

Audit
A systematic review or examination of the assertions or actions of a third party to evaluate conformance to some norm or benchmark.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Accounts Receivable
Amounts owed to a business that the business expects to receive.

Cash Letter
A group of checks accompanied by a paper listing sent to a clearinghouse, a Federal Reserve Bank, or another institution. A cash letter contains a number of negotiable items, mostly checks, accompanied by a letter that lists the amounts and instructions for transmittal to another bank. May also be called a transmittal letter.

Accounting
term that refers to the overall process of tracking your business's income and expenses, and then using these numbers in various calculations and formulas to answer specific questions about the financial and tax status of the business.

Bad Debt
Money owed for a business debt that cannot be collected

Invoice
A written record of a transaction, often submitted to a customer or client when requesting payment.