Business

Business Tips & Info

Glossary of Business and Financial Terms

GLOSSARY A


A highly trained professional who is skilled at keeping business records. The person who organizes an accounting system, prepares the financial statements, and interprets the results of those statements.

A record of a business transaction or "deal".

The complete sequence of accounting activities repeated in every accounting period.

Another term for bookkeeper.

The basic form of a balance sheet. The accounting equation consist of three parts or elements: Assets, Liabilities and Owner's Equity.

Amounts due to creditors for the purchase of goods or services on credit.

Accounts receivable are amounts claimed against debtors, usually arising from the sale or services on credit. The record of what each customer owes you.

Shows how fast merchandise or inventory moves through the business. To calculate, divide inventory by cost of goods sold and multiply by 365.

Shows how long a business takes to pay its suppliers. To calculate, divide accounts payable by purchase and multiply by 365.

Shows how long a business takes to collect its receivables. To calculate, divide accounts receivable by sales and multiply by 365.

Breaking an idea or a problem down into its parts for a good examination

A legal document filed and approved by the state, province and or federally that sets forth the purposes and regulations for a corporation.

All economic resources (items of value) owned by a business or individual, such as cash, inventories, land, buildings.

The maximum amount you can borrow against your operating loan. This maximum is the lesser of your approved operating loan limit or the margin requirements (limits) placed on your accounts receivable and /or inventory.

A service that lets a company send payroll data (on paper, by computer etc.) to the bank and the bank handles all other details of the payroll.


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Getting a Financial Picture

In managing a small business or a large corporation, fundamentals are the same:
Collect your money as quickly as possible.
Keep track of all received business documents.
Control your purchases and payments.
Keep track of cash or other payments received from your customers.
Store important business records in a safe place (fire-proof lockable cabinets or bank safe).
Keep track of all business transactions.

"With money in your pocket, you are wise and you are handsome -- and you sing well, too." ~ Yiddish proverb

The Power of Appreciation

Team work is the best tool for any business. Show some appreciation to your workers. Employee appreciation and personal thanks, whether in a small business or large corporation works magic. Every employee wants acknowledgment and personal appreciation, which is also the best way to keep them more productive, engaged, loyal and eager to contribute. Employee recognition is a powerful tool to create culture of engagement, so don't forget to offer personal thanks to your older team members. For people new in the business, experienced and older team members can provide support and guide every step of the way, if they are motivated.



Promote locally
to build long term loyalty
Add personal touch
to build trust and connection
Combine the best tools
use online and offline marketing

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