A Glossary Of Accounting And Bookkeeping Terms - Part 1

Author: 2 Bits A Dollar Bookkeeping & Tax Service | | Categories: Bookkeeping Services , Tax Accountant , Tax Planning


Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific industry, and the bookkeeping and accounting business is no exception.

To help you understand the terms, acronyms, and phrases regularly used when availing of accounting or bookkeeping services, 2 Bits A Dollar Bookkeeping & Tax Service has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your accounting and bookkeeping needs effectively.

It is the information system that identifies, records, and communicates the economic events of an organization to interested users.

Accounting information system
It is a system that collects and processes transaction data and communicates financial information to decision-makers.

Manual accounting system
It is a system in which someone performs each of the steps in the accounting cycle by hand.

It is a part of accounting that involves only the recording of economic events.

Public accounting
It is an area of accounting in which the accountant offers expert service to the general public.

Financial accounting
It is the field of accounting that provides economic and financial information for investors, creditors, and other external users.

It is the examination of financial statements by a certified public accountant to express an opinion as to the fairness of presentation.

Forensic accounting
It is an area of accounting that uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud.

Management or managerial accounting
It is the field of accounting that provides internal reports to help users make decisions about their companies. (It is also defined as an area of accounting within a company that involves such activities as cost accounting, budgeting, design and support of accounting information systems, and tax planning and preparation.)

Management consulting
It is an area of public accounting ranging from the development of accounting and computer systems to support services for marketing projects and merger and acquisition activities.

It is an area of public accounting involving tax advice, tax planning, preparing tax returns, and representing clients before governmental agencies.

Financial Accounting Standards Board (FASB)
It is a private organization that establishes generally accepted accounting principles (GAAP).

Generally Accepted Accounting Principles (GAAP)
These are common standards that indicate how to report economic events.

These are resources a business owns.

Balance sheet
It is a financial statement that reports the assets, liabilities, and owner’s equity at a specific date.

If you’re looking for a leading accountant in Kingsland, Texas, reach out to the experts at 2 Bits A Dollar Bookkeeping & Tax Service. We provide our services to small businesses and individuals in need of help with their accounts and financial records. We work hard and put in long hours, even after tax season, to help our clients meet their needs. We also offer our clients financial advice based on their income and expenses to ensure they make smart moves. Besides this, we simplify the tax process so that they understand it better and know what they have to do to save more.

To view our full list of services, please click here or get in touch with us here for more information. 

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