Accounting & ERP Glossary
Have you come across an accounting term you're not familiar with? Look it up in the glossary below.
Accounting automation refers to the process of turning tasks that once had to be performed manually into processes that are done instantly. Usually, the software takes care of handling automated accounting tasks.
Accounting software is a type of computer program that you can use to keep track of your company's financial transactions. Some of the tasks the software can often handle include accounts payable, accounts receivable and financial reporting. Using accounting software can help to improve your company's organization and documentation of financial records.
Accounts payable refers to the obligations or debts your company has due. Usually, accounts payable means the vouchers your company receives and needs to pay to vendors. Keeping track of your company's accounts payable is critical for your organization's ongoing financial health and stability.
Accounts receivable is the inverse of accounts payable. It's the money customers or clients owe your company. Managing your company's accounts receivable correctly allows you to get better control over your cash flow. The less time it takes for customers to pay, the better off your company will be.
Accrual accounting is a method your accounting team might use. Under accrual accounting, expenses or revenue is recorded when the transaction occurs, not necessarily when your company pays or get paid. Accrual accounting follows the matching principle, which dictates that expenses and revenue should be recognized in the period when they occur.
Agile accounting uses agile principles when managing the accounting process. Key to agile accounting is an ability to be flexible and to adapt and change as needed. Also crucial is a focus on simplicity.
Business Intelligence (BI)
Business intelligence is a type of software that analyzes your business' performance. It uses various performance metrics, including sales, marketing and financial performance to provide you with a holistic, bigger-picture look at your company. With BI, you can identify opportunities and business trends and decide where to go from there.
Cash Flow Statement
Your cash flow statement shows cash and cash equivalents that came in and went out of your company during a particular period. The statement can break down cash in and cash out based on the type of activity, such as financing, investing and operating. It's one of the most critical financial statements for your company.
Chart of Accounts
Your company's chart of accounts is an index of all the transactions in your general ledger. You can use the chart of accounts as a tool to get organized and make sense of your company's finances.
Cloud computing is a method of storing data and information in a decentralized location. Instead of only being able to access a piece of software on one physical computer, with cloud computing you can access it from any device that connects to the internet.
A cloud ERP is a type of enterprise resource planning software that lets you keep track of your company's accounting, project management, workflow and inventory. The software is cloud-based, meaning you can use it on any computer or device that can get online.
Core accounting refers to all the essential functions your business needs to keep its finances afloat. Those functions include paying invoices, sending invoices, creating a budget and keeping track of company spending.
Cost accounting is a process that measures the fixed costs and input costs of each production step. It compares input to output with the goal of capturing overall production cost.
Customer Relationship Management (CRM)
CRM is a type of software that lets your business keep track of customer relationships. You can use CRM software to evaluate your customer satisfaction levels and to find ways to improve the customer experience.
Our Vision is to End Month EndTM
Bold statement indeed.
The journey begins by helping your team to stop chasing your numbers, and effectively start using them.
As you achieve more efficiencies, increased automation, and real-time access to your data – the more the vision becomes reality.
Our goal is to fuel more effective decision-making, and start to put an end to those late-night Month-Ends.
Together, we can make it a reality.
Data visualization creates charts, graphs and other images to help you better see how your business data. Visualized data tends to be more useful for companies than raw data, as it lets you see changes and trends over time.
Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) is a type of software that lets you keep tabs on various aspects of your business. It provides a big-picture look at how your company is doing. It also streamlines your company's operations by automating tasks.
ERP software typically has multiple modules, or sections. Examples of ERP modules are accounting, asset and inventory management, and budgeting and forecasting. The modules you use can vary based on your business' needs and industry.
ESG stands for Environmental, Social and Governance. It's a set of principles that reflect a company's values. Many investors now look for ESG principles when deciding which companies to work with. Companies that pursue ESG principles can see greater profits thanks to increased interest from socially-conscious investors.
Fixed Asset Management
Fixed asset management refers to the process your business uses to keep track of its physical assets, such as vehicles, equipment and furniture. With fixed asset management, you can record when assets are purchased, made inactive, sold or stolen.
A fixed cost is a cost that remains constant over time. Examples of fixed costs include salaries, depreciation, rent and interest.
GAAP stands for "generally accepted accounting principles." They are standards that cover the legalities and details of business accounting. GAAP serves as the foundation for the accounting practices and methods approved by the Financial Accounting Standards Board.
General Ledger (GL)
Your company's general ledger (GL) is a record of all its financial transactions. The GL separates transaction data by type and account. Categories on the GL typically include equity, assets, liability, expenses and revenue.
Gross profit is how much your company makes once it subtracts manufacturing costs or service costs from its revenue. It's sometimes called sales profit or gross income.
HIPAA stands for Health Insurance Portability and Accountability Act of 1996. It's a law that creates standards for the transmission of sensitive health information. The goal of HIPAA is to keep private health data from getting into the wrong hands. Software used by healthcare organizations needs to be HIPAA-compliant.