Talking Cents

The uncommon accounting terms you should be aware of, by small business accountants in Melbourne

Being a small business owner, it is important for you to know about all aspects of your business and yes, that does include accounting! Our small business accountants in Melbourne will explain to you the uncommon accounting terms you should be aware of.

Most people know about the common accounting terms that our business accountants in Melbourne explained previously, so now we want to tell you about those that aren’t as common but still impact your business:

• Amortisation – is the gradual decrease of money in your liabilities or assets
• Chart of accounts – is a listing of accounts and their corresponding numbers for a business
• Departmental accounting – this is where a large business splits up their accounting and budgeting, so that each department has their own accounting duties and department
• Job Costing – a system that tracks cost associated with a specific job or project
• Write down/write off – an accounting entry that reduces the value of any asset due to an impairment
• Retained Earnings – is the amount of profit the business actually gets to keep and is not given out to shareholders
• Other Income – this is based on income not generated from the business, yet other entities that are related to it such as rent or stock

We hope that from the help of our accountants for small businesses in Melbourne, you are now more knowledgeable to run your business and work with your accountants better.

Feel to contact our small business accountants in Melbourne with any enquiries you may have.