Accounting and billing terms, explained
This accounting glossary explains 157 bookkeeping, billing, AR and AP, reconciliation, payroll and medical-billing terms in plain English, each with a definition, a worked example, a note on how it appears in QuickBooks Online and Xero, and how LedgerBPO handles it in practice.
- 157 terms
- Plain English
- QuickBooks vs Xero notes
#
- 1099-MISC1099-MISC is a US tax form used to report certain miscellaneous payments of $600 or more in a year, such as rent, prizes, awards and legal settlements, paid to a person or business that is not an employee.
- 1099-NECForm 1099-NEC is the IRS information return a US business files to report nonemployee compensation of $600 or more paid to a contractor, freelancer or other non-employee during the calendar year, kept separate from wages reported on an employee's W-2..
A
- Accounts payableAccounts payable is the money a business owes to its suppliers and vendors for goods or services it has already received but not yet paid for.
- Accounts receivableAccounts receivable is the money customers owe a business for goods or services already delivered but not yet paid for.
- AccrualAn accrual is an accounting entry that records revenue earned or an expense incurred before cash has actually changed hands.
- Accrual Basis AccountingAccrual basis accounting is a method of recording income when it is earned and expenses when they are incurred, regardless of when cash actually changes hands between the business and its customers or vendors..
- Accrued expenseAn accrued expense is a cost a business has incurred but not yet paid or recorded through a vendor invoice, such as wages earned but not yet paid out.
- Adjusting entryAn adjusting entry is a journal entry made at the end of an accounting period to record revenue or expenses that belong in that period but have not yet been recorded, so financial statements reflect accrual-basis accounting accurately..
- Aging reportAn aging report is a summary of unpaid invoices or bills, grouped by how long each one has been outstanding, typically in buckets like current, 30, 60, and 90 days past due..
- Allowance for doubtful accountsThe allowance for doubtful accounts is an estimate, set aside in advance, of how much of a business's accounts receivable will likely never be collected.
- AmortizationAmortization is the accounting method that spreads the cost of an intangible asset, such as a patent, license or loan cost, over its useful life or contract term, recording a portion as an expense each period rather than all at once..
B
- Bad debt expenseBad debt expense is the cost recorded when a business determines that money owed by a customer will likely never be collected.
- Balance SheetA balance sheet is a financial statement showing what a business owns, owes and retains in equity at a specific point in time, structured so total assets always equal total liabilities plus equity, no exceptions..
- Bank reconciliationBank reconciliation is the process of comparing a business's accounting records against its bank statement to confirm the two match.
- BASA BAS (business activity statement) is the periodic form Australian businesses registered for GST lodge with the ATO to report GST collected on sales, GST paid on purchases, PAYG withholding and other statutory obligations for the reporting period involved..
- BAS agentA BAS agent is an individual or practice registered with the Tax Practitioners Board (TPB) in Australia, authorised to prepare, review and lodge business activity statements and provide other BAS services to clients for a fee under the Tax Agent Services Act..
- BookkeeperA bookkeeper is the professional responsible for recording a business's day-to-day financial transactions, including sales, expenses, bank activity and payroll entries, so the general ledger stays accurate and current for reporting and tax purposes..
- BPOBPO, or business process outsourcing, is the practice of contracting a specific business function, such as bookkeeping, payroll, invoicing or customer billing, to an outside provider that specializes in that function, instead of performing it entirely with in-house staff..
- Budget vs ActualBudget vs actual is a report comparing planned budget figures against the actual amounts recorded for the same period, laid out by account or department so differences are easy to see and question at a glance..
- Burn rateBurn rate is the rate at which a business spends its cash reserves over a set period of time, usually measured monthly.
- Business associate agreementA business associate agreement, or BAA, is a contract required under HIPAA between a healthcare covered entity and a vendor that creates, receives, maintains or transmits protected health information on its behalf.
C
- CaaSCaaS, short for client accounting services or accounting-as-a-service, is a delivery model where an accounting firm outsources or augments its bookkeeping, controller and reporting capacity through an external team, letting the firm offer more done-for-you accounting work without hiring internally..
- Cash applicationCash application is the process of matching an incoming customer payment to the specific invoice or invoices it is meant to pay, then recording it in the accounting system so accounts receivable stays accurate..
- Cash Basis AccountingCash basis accounting is a method of recording income when cash is actually received and expenses when cash is actually paid, rather than when they are earned or incurred, regardless of what an invoice or bill might say..
- Cash conversion cycleThe cash conversion cycle is the number of days it takes a business to turn spending on inventory or work into cash collected from customers.
- Cash Flow StatementA cash flow statement is a financial statement showing the cash a business generated and used during a period, grouped into operating, investing and financing activities, separate from the profit figure shown on the income statement..
- Cash runwayCash runway is the number of months a business can continue operating before it runs out of cash, based on its current cash balance and monthly burn rate.
- Charge entryCharge entry is the step in medical billing where the services a provider delivered during a patient visit are translated into procedure and diagnosis codes and entered into the practice-management system, creating the claim that will be submitted to the payer for payment..
- ChargebackA chargeback is a forced reversal of a card payment initiated by the cardholder's bank, typically after a customer disputes a charge, that pulls the funds back from the merchant's account and returns them to the customer..
- Chart of accountsA chart of accounts is the organized list of every account a business uses to record its financial transactions, grouped into categories such as assets, liabilities, equity, income, and expenses..
- Chart of accounts mappingChart of accounts mapping is matching each account in one accounting system to the corresponding account in another, typically during a software migration, acquisition or when consolidating multiple entities into one set of financial statements.
- Chartered accountantA chartered accountant is an accounting professional who has earned a designation from a recognized professional body, such as Chartered Accountants ANZ, ICAEW, or CPA Canada's legacy CA stream, after completing exams, education and supervised practical experience..
- CIS DeductionA CIS deduction is the tax a contractor withholds from a subcontractor's payment under the UK Construction Industry Scheme, 20 per cent for a registered subcontractor and 30 per cent for one who is not registered, then pays over to HMRC each and every month..
- Claim appealA claim appeal is a formal, written request a healthcare provider submits to a payer asking it to reconsider and reverse a claim denial, supported by additional documentation, medical records, or a correction showing the original decision was wrong under the plan's terms..
- Claim denialA claim denial is a payer's decision not to pay a submitted medical claim, either in whole or in part, for a stated reason such as missing prior authorization, a coding error, or a service the plan does not cover..
- Clean claimA clean claim is a medical insurance claim submitted with complete, accurate patient, provider and coding information and no errors, so the payer can process and pay it on the first pass without requesting additional documentation or returning it for correction..
- Clearing accountA clearing account is a temporary general ledger account used to hold transactions that are in transit between two states, such as a payment received but not yet applied, until they can be matched and moved to their final account..
- Close PackageA close package is the set of reconciliations, journal entries, supporting schedules and sign-offs a business compiles each period to document and support its month-end or year-end close, rather than leaving the numbers unexplained..
- COGSCOGS, or cost of goods sold, is the direct cost of producing or purchasing the goods a business sells during a period, including materials, direct labor and freight in.
- ConsolidationConsolidation is the process of combining the financial statements of a parent company and its subsidiaries into one set of financial statements, eliminating intercompany transactions and balances so the group is reported as a single economic entity..
- Contractual adjustmentA contractual adjustment is the difference between a healthcare provider's billed charge and the amount its contract with an insurance payer allows, and it is written off rather than billed to the patient.
- ControllerA controller is the senior accounting professional responsible for a company's day-to-day accounting operations, including the month-end close, internal controls, and the accuracy of financial statements, typically reporting to a CFO or business owner..
- CPAA CPA, or certified public accountant, is an accounting professional licensed by a US state board after passing the Uniform CPA Examination and meeting education and experience requirements, authorized to sign tax returns, issue audit opinions, and represent clients before the IRS..
- CredentialingCredentialing is the process of verifying a healthcare provider's education, training, licenses and work history so a hospital, health plan or payer can confirm the provider is qualified before allowing them to treat patients or bill for services..
- Credit memoA credit memo is a document that reduces the amount a customer owes, issued for reasons like a returned product, a billing error, or a discount agreed to after the original invoice was sent..
D
- Data processing agreementA data processing agreement, or DPA, is a contract between a data controller and a data processor setting out how personal data will be collected, used, protected and returned or deleted, required under laws such as UK GDPR and similar privacy regulations.
- Days payable outstandingDays payable outstanding, or DPO, is the average number of days a business takes to pay its vendor bills.
- Days sales outstandingDays sales outstanding, or DSO, is the average number of days it takes a business to collect payment after a sale is made.
- Debit memoA debit memo is a document that increases the amount a customer owes or a vendor is owed, used to correct an undercharge, add a fee, or adjust a balance after the original invoice or bill was issued..
- DeferralA deferral is an accounting entry that delays recognizing revenue or an expense that has already been paid or received, spreading it across the period it actually covers instead of recording it all at once..
- Deferred revenueDeferred revenue is money a business has collected from a customer for a product or service it has not yet delivered.
- Deposit in transitA deposit in transit is money a business has received and recorded in its books, such as cash or checks taken to the bank or placed in a mobile deposit, that has not yet appeared on the bank statement..
- DepreciationDepreciation is the accounting method that spreads the cost of a tangible fixed asset over its useful life, recording a portion as an expense each period instead of expensing the full purchase cost immediately in the period it was bought..
- DistributionsDistributions are payments of accumulated profit made to the owners or shareholders of an S-corporation, partnership or LLC, recorded as a reduction of equity rather than as a wage or business expense.
- Double-entry BookkeepingDouble-entry bookkeeping is the accounting method in which every transaction is recorded in at least two accounts, a debit and a matching credit, so total debits always equal total credits and the books stay in balance at all times..
- DunningDunning is the structured process of reminding customers about overdue invoices, typically through a series of emails, letters, or calls that increase in urgency the longer a balance stays unpaid..
E
- E-invoiceAn e-invoice is a structured digital invoice that is created, sent and received in a machine-readable format, such as XML or UBL, so accounting systems can read it automatically, rather than a PDF or paper bill a person has to retype by hand into another system..
- EBITDAEBITDA stands for earnings before interest, taxes, depreciation, and amortization.
- Eligibility verificationEligibility verification is the process of confirming a patient's insurance coverage, plan benefits, copay and deductible status before a medical visit or procedure takes place.
- Enrolled agentAn enrolled agent is a tax professional licensed by the US Internal Revenue Service, either by passing the Special Enrollment Examination or through qualifying IRS experience, authorized to represent taxpayers before the IRS on any tax matter in any state..
- EOBAn EOB, or explanation of benefits, is a statement a health insurance payer sends to a patient, and often the provider, after processing a claim, showing what was billed, what the plan covered, what was adjusted, and what the patient owes..
- ERAAn ERA, or electronic remittance advice, is a standardized digital file a health insurance payer sends to a medical provider explaining how a claim was processed, including what was paid, adjusted or denied, matched to the corresponding electronic payment..
- EVVEVV, or electronic visit verification, is a system that electronically confirms key details of an in-home care visit, such as the caregiver's identity, the service type, and the date, time and location of the visit, typically required for Medicaid-funded home care billing..
- Expense reportAn expense report is a document an employee submits to request reimbursement for business expenses they paid out of pocket, listing each expense, its date, amount, business purpose and a supporting receipt.
F
- Financial StatementsFinancial statements are the standard reports, the balance sheet, income statement and cash flow statement, that summarize a business's financial position and performance over a period, all built from the same underlying general ledger..
- Fixed AssetA fixed asset is a long-term tangible item, such as equipment, vehicles, furniture or property, that a business owns and uses in operations for more than a year, rather than holding it for resale as inventory to customers in the ordinary course of business..
- Fractional CFOA fractional CFO is an experienced finance leader who works with a business part-time or on a contract basis, providing forecasting, cash planning and strategic financial guidance without the cost of a full-time chief financial officer..
- FTC Safeguards RuleThe FTC Safeguards Rule is a US Federal Trade Commission regulation requiring financial institutions, a category that includes tax preparers and accounting firms, to maintain a written information security program protecting customer financial data.
- Full-charge bookkeeperA full-charge bookkeeper is a bookkeeper who handles the complete accounting cycle for a small business independently, from recording transactions through month-end close and financial statement preparation, without a controller or accounting manager reviewing the work above them..
G
- General ledgerThe general ledger is the complete record of every financial transaction a business makes, organized by account.
- Gross marginGross margin is the percentage of revenue a business keeps after subtracting the direct cost of producing its goods or services, known as cost of goods sold.
- Gross receiptsGross receipts are the total amount of money a business receives from all sources during a period, before subtracting any costs, returns, discounts or expenses.
- GSTGST (goods and services tax) is a federal tax of five per cent on most sales in Canada, collected by GST-registered businesses and remitted to the Canada Revenue Agency, and combined with provincial tax into one single rate in some provinces..
H
- Hard CloseA hard close is a full month-end or year-end close in which every account is reconciled, every adjusting entry is posted and the financial statements are treated as final, typically required at quarter end and year end rather than every month..
- HIPAAHIPAA is a US federal law protecting the privacy and security of individuals' health information, setting rules for how covered entities and their business associates may use, disclose and safeguard protected health information.
- HSTHST (harmonised sales tax) is a single combined federal and provincial sales tax charged in five Canadian provinces, Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island, replacing separate GST and provincial sales tax filings entirely in those provinces..
I
- IASAn IAS (instalment activity statement) is the form Australian businesses not registered for GST use to report PAYG withholding or PAYG income tax instalments to the ATO, similar in structure to a BAS but without any of the GST labels included at all..
- Income StatementAn income statement, also called a profit and loss statement, is a financial statement showing a business's revenue, expenses and resulting net income over a period of time, such as a month, quarter or full year..
- Intercompany TransactionAn intercompany transaction is a sale, loan, expense allocation or transfer of funds or goods between two entities under common ownership, tracked separately and eliminated when the group later prepares consolidated financial statements..
- Inventory shrinkageInventory shrinkage is the loss of inventory between what the books say a business should have and what a physical count actually finds, caused by theft, damage, spoilage or recording errors.
- InvoiceAn invoice is a formal request for payment sent from a business to a customer, listing the goods or services provided, the amount owed, and the payment due date..
- IRS Section 7216IRS Section 7216 is a US tax code provision requiring a tax return preparer to get a taxpayer's written consent before disclosing or using their tax return information for purposes outside preparing that return, including sending it to a preparer located outside the United States.
- ISO 27001ISO 27001 is an international standard for an information security management system, or ISMS, setting requirements for how an organization identifies risks and applies controls to protect information.
J
- Job costingJob costing is the practice of tracking labor, materials, subcontractor and overhead costs against an individual job or project, so a business can see whether that specific job made or lost money.
- Journal EntryA journal entry is a record of a financial transaction in the accounting system, showing the accounts debited and credited and the amounts involved, that together make up the general ledger a business relies on..
K
L
- Landed costLanded cost is the total cost of getting a product from the supplier into your warehouse ready for sale, including the purchase price, freight, customs duties, insurance and handling fees.
- LockboxA lockbox is a bank-operated post office box that receives customer check payments on a business's behalf, deposits them directly, and sends the business the payment details for cash application.
M
- Maker-checkerMaker-checker is an internal control where the person who creates or enters a transaction, the maker, is different from the person who reviews and approves it, the checker, so no single person can post an error or a fraudulent entry unchecked..
- Making Tax DigitalMaking Tax Digital (MTD) is HMRC's programme requiring UK businesses to keep digital records and file returns through compatible software, extending from VAT to self-employed people and landlords above set income thresholds starting from 6 April 2026 onward..
- Management AccountsManagement accounts are internal financial reports, typically produced monthly, that show a business's performance in more detail than statutory accounts, used by owners and managers to make decisions about the business during the year..
- Merchant feeA merchant fee is the charge a payment processor such as Stripe or Square deducts from a card or online payment before depositing the remaining amount into a business's bank account, covering the network, interchange and processing costs of handling the transaction..
- Mileage reimbursementMileage reimbursement is payment to an employee for using their personal vehicle for business travel, calculated by multiplying business miles driven by a per-mile rate, often the IRS standard mileage rate.
- Milestone billingMilestone billing is a method of invoicing tied to specific, defined achievements in a project, such as a design approval or a completed phase, rather than to time elapsed or a fixed percentage schedule..
- Month-end CloseMonth-end close is the recurring process of reconciling accounts, posting adjusting entries and reviewing financial statements so a business's books are accurate and complete for the period that just ended, before moving on to the next..
N
- Nearshore accountingNearshore accounting is the practice of having bookkeeping or accounting work performed by a team based in a country geographically close to the client, such as a US business using a provider in Mexico, chosen for closer time-zone alignment than a farther offshore option..
- Net incomeNet income is a business's total profit after subtracting all expenses, including cost of goods sold, operating expenses, interest, and taxes, from its total revenue.
- NSF checkAn NSF check, short for non-sufficient funds, is a check that bounces because the payer's bank account does not have enough money to cover it, leaving the payee's deposit reversed and the original invoice still unpaid..
O
- Offshore accountingOffshore accounting is the practice of having bookkeeping, accounts receivable and payable, or reconciliation work performed by a team located in a different country from the client, usually to access lower labor costs or broader talent availability..
- Opening balance equityOpening balance equity is a default account QuickBooks creates automatically to hold the offsetting entry whenever an opening balance is entered for a bank, credit card or other balance sheet account.
- Outstanding checkAn outstanding check is a check a business has written, recorded in its books, and handed to a payee, but that has not yet been deposited or cashed, so it has not yet cleared the bank account even though it reduces the available balance on paper..
- Owner's drawOwner's draw is money a sole proprietor, partner or LLC member takes out of the business for personal use, recorded as a reduction of owner's equity rather than as a wage or business expense.
P
- P11DA P11D is the UK form an employer files with HMRC reporting the value of benefits in kind and certain expenses provided to an employee or director, such as a company car or private medical insurance, that are not put through payroll.
- P45A P45 is the UK form an employer gives an employee when they leave a job, showing their pay and tax deducted so far in the current tax year for the new employer or HMRC to use.
- P60A P60 is the UK certificate an employer gives each employee at the end of the tax year summarizing their total pay, tax and National Insurance deducted for that year.
- Patient statementA patient statement is the bill a healthcare provider sends to a patient after their insurance has processed the claim, showing the remaining balance the patient owes.
- Payday SuperPayday super is the Australian reform, taking effect 1 July 2026, requiring employers to pay superannuation guarantee contributions on the same day as wages, instead of the current schedule that allows contributions up to 28 days after each quarter closes..
- Payer enrollmentPayer enrollment is the process of registering a healthcare provider or practice with a specific insurance payer, such as Medicare, Medicaid or a commercial plan, so claims submitted under that provider's number can be processed and paid..
- PAYG WithholdingPAYG withholding is the Australian system requiring employers to withhold tax from employee wages and certain payments to contractors, then remit that amount to the ATO and report it on the business activity statement or instalment activity statement for the period..
- PayoutA payout is the net amount a payment processor, marketplace or payment platform deposits into a business's bank account after deducting processing fees, refunds and chargebacks from the gross sales it collected on the business's behalf over a given period..
- Payroll LiabilitiesPayroll liabilities are amounts a business owes but has not yet paid, covering taxes withheld from employee wages, the employer's own share of payroll taxes, benefit deductions and net wages, until each amount is actually remitted or paid out to the right party..
- Per diemPer diem is a fixed daily allowance a business pays an employee to cover meals, lodging and incidental costs while traveling for work, instead of reimbursing each itemized receipt.
- Petty cashPetty cash is a small amount of physical cash a business keeps on hand to cover minor, incidental expenses, such as postage or office supplies, that are impractical to pay by check or card.
- PIPEDAPIPEDA is Canada's federal private-sector privacy law governing how organizations collect, use and disclose personal information in the course of commercial activity.
- Prepaid expenseA prepaid expense is a payment made in advance for a good or service that will be received over future periods, such as insurance or rent.
- Prior authorizationPrior authorization is the approval a health insurer must give before it will pay for certain procedures, medications or equipment, confirmed in advance of the service being performed.
- Pro forma invoiceA pro forma invoice is a preliminary bill sent to a customer before a sale is finalized, showing the expected cost of goods or services.
- Progress billingProgress billing is a method of invoicing a customer in stages as work on a long-term project is completed, rather than billing the full amount at the very end.
- PSTPST (provincial sales tax) is a separate retail sales tax charged on top of federal GST in British Columbia, Saskatchewan and Manitoba, collected and remitted to the province rather than to the Canada Revenue Agency, on its own independent filing schedule and deadline..
- Purchase orderA purchase order is a formal document a business sends to a vendor listing exactly what it wants to buy, the agreed price, and quantity, before the vendor ships the goods or performs the service..
Q
R
- Reconciling itemA reconciling item is any transaction that appears on a bank statement but not yet in a company's books, or vice versa, and must be identified and explained before a bank reconciliation can be marked complete..
- Recurring invoiceA recurring invoice is an invoice that is automatically generated and sent on a set schedule, such as monthly or quarterly, for a customer who is charged the same or a similar amount on an ongoing basis..
- Remittance adviceRemittance advice is a document a customer sends along with a payment that lists which invoices the payment covers.
- RetainageRetainage is a percentage of each progress payment on a construction contract, typically 5 to 10 percent, that the owner withholds until the project reaches substantial completion.
- Retained earningsRetained earnings is the cumulative net income a business has kept and reinvested since it started, after subtracting any dividends or distributions paid to owners.
- RetainerA retainer is an upfront payment a client makes to secure ongoing access to a business's services, often held as a credit against future invoices or as a guarantee the business will be available when needed..
- Revenue cycle managementRevenue cycle management, or RCM, is the end-to-end process healthcare providers use to track patient revenue, covering scheduling and eligibility verification, charge entry, claim submission, payment posting, denial management and patient collections, from first patient contact through the final payment received..
- Reversing entryA reversing entry is a journal entry dated the first day of a new accounting period that cancels out an adjusting entry from the prior period, so accrued amounts do not get double-counted once the actual invoice or payment is recorded..
- RTI SubmissionAn RTI submission is the Full Payment Submission a UK employer sends to HMRC on or before each payday, reporting pay, deductions and tax for that period under HMRC's Real Time Information system, rather than waiting until the end of the tax year..
S
- Sales Tax NexusSales tax nexus is the connection between a business and a US state, created by physical presence or by crossing a state's sales or transaction threshold, that requires the business to register and collect that state's sales tax on future sales into it..
- Service level agreementA service level agreement, or SLA, is a written agreement between a service provider and a client that defines the specific level of service to be delivered, such as response time, turnaround time or accuracy targets, and what happens if that level is not met..
- Settlement reportA settlement report is a statement issued by a payment processor or marketplace that itemizes every transaction, fee, refund and chargeback included in a specific payout, showing how the gross sales figure became the net deposit..
- Single Touch PayrollSingle Touch Payroll (STP) is the ATO reporting system requiring Australian employers to report wages, tax withheld and superannuation to the ATO each time they run payroll, rather than only once at the very end of the financial year as before..
- SOC 2SOC 2 is an auditing standard, developed by the AICPA, that evaluates a service organization's controls around security, availability, processing integrity, confidentiality and privacy, resulting in an independent auditor's report.
- Soft CloseA soft close is a lighter month-end close that reconciles the main accounts and produces usable financial statements quickly, deferring some low-impact adjustments or detailed reviews to the next full close instead of chasing every item..
- Statement of accountA statement of account is a summary document sent to a customer or received from a vendor listing all invoices, payments, and credits over a period, along with the current outstanding balance..
- Subscription billingSubscription billing is the process of charging customers on a recurring basis, usually monthly or annually, for ongoing access to a product or service.
- Suspense accountA suspense account is a temporary general ledger account used to record a transaction whose correct classification is not yet known, so a bank deposit or payment can be posted right away while the bookkeeper investigates where it actually belongs..
T
- T4A T4 is the Canadian slip employers issue to each employee showing total employment income, deductions and taxes withheld for the calendar year, used to file a Canadian personal income tax return.
- T4AA T4A is a Canadian slip reporting income such as pension, retirement, annuity, self-employed commissions, scholarships or certain fees for services, paid to someone who is not an employee.
- T5A T5 is a Canadian slip reporting investment income, such as interest, dividends and certain other investment returns, paid to a resident during the year.
- Three-way matchThree-way match is the process of comparing a vendor's purchase order, delivery receipt, and invoice before approving payment, to confirm the business is only paying for what it actually ordered and received..
- Trial balanceA trial balance is a report that lists every account in the general ledger along with its debit or credit balance, used to confirm that total debits equal total credits before financial statements are prepared..
- Two-tier reviewTwo-tier review is LedgerBPO's name for its maker-checker process, where a dedicated bookkeeper prepares each month's work and a second, more senior reviewer checks it against source documents before the close is marked complete..
U
- UK GDPRUK GDPR is the United Kingdom's version of the EU General Data Protection Regulation, retained in UK law after Brexit, governing how personal data of individuals in the UK is collected, used and protected.
- Unapplied paymentAn unapplied payment is a customer payment that has been received and recorded in the accounting system but has not yet been matched to a specific invoice, leaving the customer's account showing a credit with no offsetting charge..
- Undeposited fundsUndeposited funds is a holding account in accounting software that records customer payments received, such as checks or cash, from the moment they are entered until they are physically or electronically deposited into the bank..
- Unearned revenueUnearned revenue is another name for deferred revenue: payment a business has received for goods or services it has not yet delivered.
V
- Variance AnalysisVariance analysis is the comparison of actual financial results against a budget or forecast to identify and explain the differences, so management can understand what changed and decide whether to act on it or leave it alone..
- VATVAT (value added tax) is a UK tax added to most goods and services at each stage of sale, which a business must register for once its taxable turnover passes £90,000 in a rolling 12-month period, not simply a single fixed tax year..
W
- W-2Form W-2 is the annual wage and tax statement a US employer issues to each employee, reporting total wages paid and taxes withheld during the year, filed with the Social Security Administration and delivered to the employee by January 31 each year..
- W-9Form W-9 is an IRS form a US business collects from a contractor or vendor before paying them, capturing the payee's legal name, business type, tax classification and taxpayer identification number so the payer can prepare accurate 1099 forms at year end..
- White-label accountingWhite-label accounting is an arrangement where an outsourced provider performs bookkeeping, reconciliation or reporting work behind the scenes for an accounting firm, but the work is delivered to the firm's clients under the firm's own name and branding..
- WIPWIP, or work in progress, is the value of costs incurred on jobs or units that are started but not yet completed or billed, carried on the balance sheet as an asset until the work is finished and invoiced.
- Working capitalWorking capital is the difference between a business's current assets, like cash and accounts receivable, and its current liabilities, like accounts payable and short-term debt.
- Write-offA write-off is the removal of an uncollectible amount, such as an unpaid invoice or damaged inventory, from a business's books because it is no longer expected to be recovered.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.
Next step
Books closed. Invoices paid. Every month.
Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close.
- Reply from a named person within 1 business day
- No setup fee, month-to-month
- Your software, your data, no lock-in
Start with a custom quote
Get a custom quote Book a 20-minute callOr call +1-657-777-0006 during US, UK or Australian business hours.