Accounting terms

The bookkeeping words the accounting reports and forms use, in plain language.

Trial balance

Every account's balance on one date, each in its debit or credit column. The two totals match when your books balance.

What you owe each supplier, grouped by how many days past its due date each bill is. Current is not yet due.

What each customer owes you, grouped by how many days past its due date each invoice is. Current is not yet due.

The equity account that takes the other side of every opening balance, so each one still posts a balanced entry.

What the business owns, owes and keeps for its owners on one date. Assets equal liabilities plus equity when your books balance.

This calendar year's income less expenses up to the date shown. It counts as equity without being posted.

Your income less your expenses over a range, from your books. Net income counts every expense, cost of goods sold included.

Counts marketplace sales and fees on the day they happened, and everything else on its own date.

Counts marketplace sales and fees on the payout day, and everything else on its own date.

Why your cash moved over a range. It starts from net income, then splits the rest into operating, investing and financing activity.

Each entry counts when earned or incurred, so closing cash matches the balance sheet. Opening balances are starting cash, not activity.

Every posting in your books over a range, by account: opening balance, postings, and closing balance.

One account's postings over a range, with the account's balance after each one, so you can trace how it reached its closing balance.

The statement ending balance minus the cleared balance. It reaches zero when every line on your statement is ticked.