Above-the-line deduction
A deduction that you can subtract from your adjusted gross income.
Read More Accelerated depreciation
An accounting method that allows greater depreciation of an asset’s value.
Read More Accounting method
Rules and guidelines businesses use to keep their financial records
Read More Accounting period
The length of time covered by a financial statement or operation.
Read More Accounting software
Software that does various accounting and bookkeeping tasks.
Read More Accounts payable
Money a company owes its suppliers for goods and services.
Read More Accounts receivable
The money owed to a person or business by its debtors
Read More Accounts receivable turnover
Number of times per year that your business collects its average accounts receivable
Read More Accrual accounting
Accrual basis accounting records revenue- and expense-related items when they first occur
Read More Adjusted basis
How much you lose or gain when you sell a property
Read More Adjusted gross income
Your total gross income before taxes, minus deductions
Read More Adjustments to income
Deductions you can take for income you earned that can’t be taxed
Read More Allowable Cost
A cost that can be billed to the customer
Read More Alternative minimum tax (AMT)
A method to calculate a tax bill when income is over a certain level.
Read More Amended return
A tax return that has been filed but then revised to correct errors.
Read More Amortization
The process of paying off a debt with regular payments over time
Read More Amortizing loan
A type of debt that requires regular, monthly payments
Read More Annual percentage yield (APY)
The rate earned on an investment in a year
Read More Appreciation
The increase in the price or the value of an asset.
Read More Assessment
The value of an asset for taxation purposes.
Read More Asset allocation
How your assets are divided among asset classes
Read More Asset case
Type of bankruptcy in which the person has some assets and cash to pay creditors
Read More Assets
Anything you own with a with monetary value
Read More Audit
The process of examining an aspect of an individual or company
Read More Average tax rate
The percent of taxes divided by taxable income.
Read More Balance sheet
How a business records its financial information
Read More Bank reconciliation
Bank reconciliation involves comparing your financial records with your bank statements and identifying any differences
Read More Bankruptcy
A legal process that can absolve people or corporations of some of their debts.
Read More Basis of accounting
Determines when you formally count a sale as income
Read More Break even point
Amount of revenue necessary to cover the total fixed and variable expenses
Read More Capital
A company's financial resources, including stocks, bonds, and assets.
Read More Capital gains
Profits made when assets are sold.
Read More Capital loss
Losses incurred when certain assets are sold for less than their purchase price.
Read More Cash accounting
Records revenues and expenses when the money involved in each transaction officially changes hands.
Read More Cash flow statement
A financial report that shows where your money is coming from and where it’s going
Read More Cash method
A method of accounting in which income is not counted until the payment is received
Read More Chart of accounts
A master list of all accounts in an organization's general ledger
Read More Cost of goods sold (COGS)
The cost of materials, work, and purchasing goods.
Read More Current year tax
The amount of tax payable in the current year
Read More Debt consolidation
The process of combining multiple debts into one.
Read More Debt-to-income ratio
How much of a person’s monthly income is taken up by their debt
Read More Deduction
An amount you can subtract from your gross income to lower tax
Read More Dependent
An individual who is financially supported by another person
Read More Depreciation
The decrease in the value or price of an asset
Read More Direct tax
A tax paid by the person who owns the property or income being taxed
Read More Dividend
A distribution of a company's earnings to its shareholders
Read More Dividend imputation
The process of eliminating double taxation on payments
Read More Due diligence
A systematic way to review and reduce risk from a business or investment decision
Read More E-commerce
Any transaction that is conducted over the internet.
Read More E-file
A system that enables income tax returns to be filed over the internet.
Read More EBITDA
Earnings before interest, taxes, depreciation, and amortization.
Read More Emergency fund
Money that’s set aside for unplanned and typically urgent or important expenses.
Read More Employee savings plan
A pooled investment account into which workers deposit some of their pre-tax earnings
Read More Equity
The value of an asset after any of the asset’s liabilities have been deducted.
Read More Estate
A person’s net worth based on the assets they own minus the amount they owe
Read More Estate tax
A tax assessed when a deceased person’s estate is distributed to the beneficiaries.
Read More Estimated tax payments
These are made quarterly to tax authorities by people whose income is estimated from the previous year.
Read More Exclusion tax
Income that taxpayers can leave out of their gross income
Read More Fair market value
The price a willing buyer would pay for a home in an open market
Read More Financial statement
A formal record of a business' financial activities and position
Read More Fiscal year
A fiscal year is a 12-month period that a business uses for accounting and financial reporting purposes.
Read More Fixed assets
Fixed assets are long-term, tangible resources that a business owns
Read More Flat tax
A system in which all people pay the same tax rate regardless of their income.
Read More Fractional ownership
Where a group of people all own a portion of an asset
Read More Government bond
A form of security sold by the government that earns a fixed amount of interest
Read More Gross income
The total earnings a person receives before they account for taxes and other deductions.
Read More Gross profit
Gross profit (or gross income) defines the value of the products and services sold by a business before factoring in the cost of goods sold.
Read More Gross profit margin
The amount of revenue in a given period after a company pays for workers and materials
Read More Gross profit vs Net profit
Gross profit and net profit are both key measures of a business’s profitability
Read More Income tax
Taxes that are charged against a person or company’s earnings
Read More Indirect tax
A tax that is imposed on a transaction
Read More Inventory
Describes assets (products) that a company intends to sell
Read More Investment income
Money that someone earns when the value of their investments–such as stocks or property– increases.
Read More Invoice
A formal document issued by a seller to a buyer that outlines the details of a transaction
Read More Ledger balance
An account balance at the beginning of each day.
Read More Leverage
When a company takes on debt in order to invest in more assets
Read More Liability
Anything that a person or business owes money on.
Read More Liquid assets
Anything that you or your company owns that can be instantly converted into cash
Read More Liquidity
The ability or ease with which your assets can be converted into cash.
Read More Living trust
A legal arrangement where a still-living person (trustor) gives assets to a trustee to manage
Read More Load
A commission (fee) paid to a sales broker by an investor.
Read More Negative equity
A term used when the mortgage amount is higher than the current market value of the home.
Read More Net income
The amount an individual or business makes after deducting costs, allowances and taxes.
Read More Net profit
The amount of money left over after subtracting the cost of taxes and goods sold
Read More Net worth
A measure of wealth calculated by the sum of all assets owned by a person or a company, minus any obligations or liabilities.
Read More Non-liquid asset
An asset that can not quickly or easily be converted into cash
Read More Note
A legal debt instrument where one party makes a promise in writing to pay
Read More Operating margin
How much revenue a company retains after covering costs like payroll, taxes and materials.
Read More Operating profit
The income a company earns from its core operations, excluding interest and taxes, reflecting operational efficiency.
Read More Options
A contract in which an investor has the right to buy or sell a tradable asset at a specified price
Read More Payroll records
Document employee compensation, including wages, bonuses, taxes and benefits.
Read More Periodic rate
The interest rate charged over a certain number of time periods...
Read More Private equity
A situation where investors pool money to acquire stakes in a company.
Read More Profit and Loss Statement
Shows how much your business has spent and earned over a specified time
Read More Property tax
Taxes paid by homeowners to help cover costs in their community
Read More Purchase agreement
A document outlining the purchase price and other conditions associated with the transfer of title
Read More Recession
A period of economic decline lasting more than a few months and affects every sector.
Read More Refinance
Changing the terms of a loan, often by replacing your current loan with a new one.
Read More Return on Assets (ROA)
A measure of how much profit a business is generating from its capital.
Read More Return on Equity (ROE)
A measure of the profitability of a business.
Read More Return on Investment (ROI)
The profit from a particular activity or period compared with the amount invested in it.
Read More Revenue
The income that a business receives regularly, typically due to the sale of goods or services.
Read More Risk
The possibility that a return on investment will be lower than what the investor is expecting.
Read More Roth IRA
A Roth IRA allows you to invest cash after-tax, so you’ll pay taxes on any contributions before they go into the account.
Read More S corporation
An S corporation lets shareholders file their taxes using the company’s income and losses as their own.
Read More Safe harbor
Safe harbor provisions protect an entity from liability as long as it acted in good faith.
Read More Schedules
Documents required by the IRS to record financial information.
Read More Self-directed IRA
SDIRA allows you to invest in a wide variety of alternative assets
Read More Self-employment tax
People who work for themselves are required to pay Social Security and Medicare taxes
Read More Signature loan
A personal loan that only requires the borrower’s signature and a promise to pay as collateral
Read More Sole proprietorship
A sole proprietorship is a business owned and operated by one individual, with no legal distinction between owner and business.
Read More Stockbroker
A licensed professional with the authority to buy and sell stocks for investors.
Read More Tax bracket
The range of incomes that are subject to a certain income tax rate.
Read More Tax credit
The amount of money a taxpayer can subtract from their tax bill.
Read More Tax deduction
An item you can subtract from your taxable income to reduce the amount of taxes you owe.
Read More Tax deferral
When a taxpayer delays paying their taxes to some point in the future.
Read More Traditional IRA
Allows you to invest cash pre-tax
Read More Trial balance
A trial balance is a report of the balances of all general ledger accounts at a point in time.
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