Bad Debt
Money owed for a business debt that cannot be collected

Double-Entry Accounting
A system of accounting that records each business transaction twice.

Ledger
A physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable.

Balance Sheet
A statement listing a business's assets, liabilities, and net worth, or equity.

Net Income
Gross income less expenses; it represents a business's profit for a given year.

Invoice
A written record of a transaction, often submitted to a customer or client when requesting payment.

Audit
A systematic review or examination of the assertions or actions of a third party to evaluate conformance to some norm or benchmark.

Accrual Method Of Accounting
Accounts for income and expenses in the 12-month period earned or incurred, which is not necessarily when it is received or paid.

Statement
A formal written summary of outstanding invoices.

Accounting
term that refers to the overall process of tracking your business's income and expenses, and then using these numbers in various calculations and formulas to answer specific questions about the financial and tax status of the business.