15 More Must-Know Bookkeeping & Financial Terms for Small Business Owners
Running a business without understanding your numbers is like driving blindfolded. These are 15 frequently Googled bookkeeping and financial terms that every entrepreneur should know—especially if you're managing your books or using QuickBooks Online.
1. Equity – The owner’s share of the business after liabilities are subtracted from assets.
2. Revenue – The total amount of income generated from business operations before expenses.
3. Cost of Goods Sold (COGS) – Direct costs tied to producing your product or service.
4. Operating Expenses – Ongoing business costs like rent, utilities, marketing, and admin.
5. General Ledger – The complete record of all business transactions.
6. Journal Entry – A manual entry in the accounting system used to adjust balances.
7. Accrual Accounting – Recognizing income and expenses when they’re earned or incurred, not when cash moves.
8. Cash Accounting – Recognizing income and expenses only when money actually changes hands.
9. Fixed Assets – Long-term resources like equipment, furniture, or vehicles used in business.
10. Liabilities – Debts or obligations your business owes (like loans or unpaid bills).
11. Inventory – The goods or materials a business holds to sell or use in production.
12. Net Income – The amount left over after all expenses are deducted from revenue.
13. Burn Rate – How quickly a business uses its cash, often used by startups.
14. Break-Even Point – When revenue equals expenses—no profit, no loss.
15. Retained Earnings – Profits that are kept in the business instead of being distributed to the owner(s).
Learning these terms gives you clarity, confidence, and control over your finances. Inside the DBR Bookkeeping Online Community, we break down these concepts in real-world terms through video walkthroughs, live Q&A calls, and a support network of like-minded entrepreneurs.
Join the DBR Bookkeeping Online Community and stop doing it alone:
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FAQ: Small Business Bookkeeping Terms
What’s the difference between cash and accrual accounting?
Cash basis records income/expenses when money is received/spent. Accrual tracks them when earned/incurred.
What is a general ledger used for?
It’s the master record of all your business transactions.
Why do I need to know my break-even point?
It tells you how much you need to earn to cover your costs—critical for pricing and planning.
What are retained earnings?
They are profits kept in the business instead of being paid out to the owner.
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