3 General Business Finance Terms You Must Know

78.6 percent of small businesses last only one year. Most likely, business people do not understand how to study profits, expenses, accounting, and other business finance matters that should affect business success. So that many people choose to organize company finances with an expert. If you also need it, you are at the right place in Irenas Accounting and bookkeeping.

Understanding business finance terms help you prevent these problems and the business from growing in the years to come.

1 Bookkeeping
Bookkeeping is a chronological document of transactions. As a business owner, you can record and monitor transactions in a bookkeeping journal or excel, or use accounting software that automatically tracks and monitors every transaction.

2 Expenses
Fixed expenses or purchases you make for your business, such as point-of-sale kits, or insurance. If you make these purchases on credit, these charges are known as accounts payable.

3 General Ledger
A general journal is also called a general ledger, in a general journal you track and record account balances per period chronologically. You’ll need to keep track of your account balances, credits, and debits, which are then used to get a big picture of your entire business.

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