More Accounting Terms to Know

There are many accounting terms that are commonly used in the accounting industry, and we at TCA do not expect you to know them unless you have studied or are working in an accounting-related field.  We make sure to communicate clearly and effectively with our clients so that they never have to wonder, “What does that mean?”, but there are, however, accounting terms that we suggest you learn. Becoming familiar with key accounting terms benefits you and allows you to be more aware and confident about your individual or business’ financial situation.  

This is the second part of our “Accounting Terms to Know,” series. If you have yet to read the first part of the series click here and then circle back to learn more. Now onto part two. Let us dive in! Here are 4 basic accounting terms that you should know. 

Bookkeeper 

A bookkeeper is responsible for recording and maintaining the financial transactions of a business or organization. These responsibilities can include completing data entry by recording sales and invoices, tracking debits, paying bills, processing payroll, and monitoring the financial records 

GAAP 

GAAP stands for Generally Accepted Accounting Principles. These are the principles, concepts, rules, and guidelines used by accountants to ensure financial records are recorded and managed properly.  

Controller 

A controller is an accounting position that oversees and manages an organization's daily accounting operations. These operations can include supervising bookkeepers, providing detailed internal financial statements, expanding/creating accounting processes, policies, and procedures, budgeting, and forecasting. This position assists with guiding strategic decisions and is an important part of the financial team.  

Accounts payable 

Accounts payable, often written as “AP,” is a business’ unpaid bills or what is owed to creditors including vendors, suppliers, and/or other service providers.  

Now you have a few more terms to assist you on your financial journey. Do not be afraid to use these the next time you are talking with your accountant. Time to show off! We will continue to share more, “accounting things you should know,” blog posts coming soon.  

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