Bank Reconciliation
The process of comparing the bank statement with the company's cash book to identify differences.
Catch-up Bookkeeping
The process of bringing historical financial records up to date.
Chart of Accounts
A structured list of all accounts used in the general ledger for recording transactions.
CPA (Certified Public Accountant)
A licensed accounting professional who has passed the CPA exam and meets state requirements.
Engagement Letter
A formal agreement between the accountant and client outlining the scope of services.
GAAP (Generally Accepted Accounting Principles)
Standard framework of accounting guidelines used in the US.
General Ledger
The master set of accounts that summarizes all transactions occurring within the entity.
IFRS (International Financial Reporting Standards)
International accounting standards used in many countries outside the US.
Accounts Payable (AP)
Money owed by a company to its creditors for goods or services received.
Accounts Receivable (AR)
Money owed to a company by its customers for goods or services delivered.
Trial Balance
A bookkeeping worksheet with all debit and credit balances to verify accuracy.
Fixed Assets
Long-term tangible assets used in operations, such as property, equipment, and vehicles.
Depreciation
The systematic allocation of an asset's cost over its useful life.
Accrual Accounting
Recording revenues and expenses when they are incurred, regardless of cash flow.
Cash Accounting
Recording transactions only when cash changes hands.
Workpaper
Documentation supporting the entries and conclusions in financial statements.
Reconciliation
The process of ensuring two sets of records match.
Aging Report
A report showing receivables or payables categorized by age (current, 30, 60, 90 days).
Book of First Entry
The initial record where transactions are entered, such as the sales journal or cash book.
Closing Entries
Journal entries made at the end of an accounting period to transfer temporary account balances.