- 1099-K
An IRS information return issued by card processors and payment platforms for payments they handled. Payments you make by card are generally reported on 1099-K rather than 1099-NEC.
In fiscal50. Card payments are excluded from 1099-NEC tracking by default.
In fiscal50- 1099-NEC
An IRS form reporting nonemployee compensation paid to independent contractors and other vendors above the year’s reporting threshold.
In fiscal50. Flag a vendor for 1099 tracking and fiscal50 builds the year-end report, checks for missing details and exports or prints Copy B.
In fiscal50
- Accounts payable
Money a business owes to vendors for goods and services received but not yet paid for.
In fiscal50. Vendor bills create payables; the Aging AP summary shows what is due by age.
Definition and exampleIn fiscal50- Accounts receivable
Money customers owe a business for goods or services already delivered.
In fiscal50. Invoices create receivables; the Aging AR summary shows what is outstanding by age.
Definition and exampleIn fiscal50- Accrual basis
An accounting method that records income when earned and expenses when incurred, regardless of when cash moves.
In fiscal50. Reports and exports can be switched between accrual and cash basis.
Definition and exampleIn fiscal50- ACH payment
An electronic bank-to-bank transfer in the United States through the Automated Clearing House network.
In fiscal50. Customers can pay invoices and checkout pages by US bank account through Stripe.
In fiscal50
- Balance sheet
A financial statement listing what a business owns (assets), owes (liabilities) and the owners’ stake (equity) on a given date. Assets always equal liabilities plus equity.
In fiscal50. Run single or multi-column balance sheets by day, week, month, quarter or year.
Definition and exampleIn fiscal50- Bank feed
An automatic, ongoing import of transactions from a bank or card account into accounting software.
In fiscal50. Bank feeds come through Plaid and arrive in Banks to Books with AI recommendations.
In fiscal50- Bank reconciliation
Comparing the transactions and ending balance in your books with a bank statement to confirm they agree and explain any differences.
In fiscal50. Auto-reconciliation predicts each period’s ending balance, checks it against the bank and reconciles month after month until something needs you; you can also reconcile any period yourself.
Definition and exampleIn fiscal50
- Cash basis
An accounting method that records income when cash is received and expenses when cash is paid.
Definition and exampleIn fiscal50- Cash flow statement
A financial statement showing cash coming in and going out from operating, investing and financing activities over a period.
In fiscal50- Chart of accounts
The organized list of every account a business uses to record transactions, grouped into assets, liabilities, equity, income and expenses.
In fiscal50. Start with fiscal50’s pre-configured chart or import your own from QuickBooks.
Definition and exampleIn fiscal50- Cost of goods sold (COGS)
The direct cost of the products a business sold during a period.
In fiscal50. COGS is recorded as inventory items sell.
In fiscal50
- Deferred expense
A cost paid in advance, such as annual insurance, that is expensed over the periods it covers.
In fiscal50- Deferred revenue
Money received for goods or services not yet delivered. It is a liability until earned.
In fiscal50. Retainers and deferred income are recognized over time by scheduled processing.
In fiscal50- Depreciation
Spreading the cost of a long-lived asset over its useful life as an expense.
In fiscal50. Straight-line depreciation, monthly or annually, created on schedule for your approval (Auto) or posted yourself (Manual).
Definition and exampleIn fiscal50- Double-entry bookkeeping
The system in which every transaction is recorded in at least two accounts, with equal debits and credits, so the books always balance.
In fiscal50. Every bank transaction, invoice, bill and payment posts as a balanced double-entry journal entry.
Definition and exampleIn fiscal50
- Fixed asset
Long-term property a business uses to operate, such as equipment, vehicles or buildings.
In fiscal50
- General ledger
The complete record of every account and every transaction posted to it.
In fiscal50. Drill into any account from a report and export the ledger to Excel.
Definition and exampleIn fiscal50
- Income statement
Also called profit and loss. A financial statement showing revenue, expenses and net income over a period.
Definition and exampleIn fiscal50
- Journal entry
A record of a transaction showing the accounts debited and credited and the amounts.
Definition and exampleIn fiscal50
- Month-end close
Also called closing the books. The process at the end of a month or year of making sure every transaction is recorded and reconciled, then locking the period so the reported numbers do not change.
In fiscal50. A checklist lists pending items, reconciliation is required, and closed periods are locked.
Definition and exampleIn fiscal50
- Opening balance
The balance of each account on the date your books begin in a new system.
In fiscal50. Upload a trial balance or balance sheet as of your start date, or enter opening entries by hand.
In fiscal50
- Progressive invoicing
Billing a project or approved proposal in parts over time, such as a deposit followed by milestone installments.
In fiscal50
- Retained earnings
The profits a company has earned over its life and kept in the business instead of paying them out to its owners. Beginning retained earnings plus net income minus distributions equals ending retained earnings.
In fiscal50. Earlier years’ profit shows as Retained Earnings on the Balance Sheet, with this year’s profit as Net Income under it.
Definition and exampleIn fiscal50- Retainer invoice
An invoice for an advance payment that is applied to future work.
In fiscal50
- Sub-ledger
A detailed ledger for one account or group, such as a single bank account or customer, that rolls up into the general ledger.
In fiscal50
- Transaction categorization
Assigning each bank or card transaction to the right income or expense account.
In fiscal50. AI recommends a category with a confidence level and explanation.
In fiscal50- Trial balance
A list of every account with its debit or credit balance at a point in time. Total debits must equal total credits.
Definition and exampleIn fiscal50
- Working capital
Current assets minus current liabilities, a measure of short-term financial health.
In fiscal50
Make this the last month you do bookkeeping by hand.
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