Accounting Terms Articles

Accounting Terms

Understanding accounting terminology is essential for every business owner, entrepreneur, and startup founder. Whether you’re reviewing financial statements, working with a bookkeeper, or applying for a business loan, knowing the language of accounting helps you make better decisions and stay in control of your finances.

At Accounting Moncton, we believe that financial literacy starts with the basics. That’s why we’ve created this resource to help you understand the most common accounting terms used in small business financial management across New Brunswick and Canada.

Key Accounting Terms Every Business Owner Should Know

Assets – Resources your business owns, such as cash, equipment, inventory, or accounts receivable.

Liabilities – Obligations your business owes to others, including loans, accounts payable, and credit card balances.

Equity – The owner’s interest in the business, calculated as assets minus liabilities.

Revenue – The total income your business earns from selling goods or services.

Expenses – The costs incurred to run your business, such as rent, wages, and supplies.

Accounts Receivable – Money owed to your business by customers for products or services already delivered.

Accounts Payable – Money your business owes to suppliers or vendors for goods and services received.

GST/HST – Goods and Services Tax / Harmonized Sales Tax, which Canadian businesses must collect and remit to the CRA.

Reconciliation – The process of matching your accounting records against your bank statements to ensure accuracy.

Why Accounting Terms Matter for Your Business

When you understand accounting terminology, you can communicate more effectively with your accountant or bookkeeper, read your financial reports with confidence, and identify potential issues before they become problems. At Accounting Moncton, we’re proud members of the QuickBooks ProAdvisor Program and are here to support your business growth. ProAdvisors are independent professionals, not employed by Intuit Inc.

Are you looking for ways to grow and improve your business? Contact Accounting Moncton today — we’d like to help.