The small-business bookkeeping glossary
Use this plain-language reference to better understand common bookkeeping, financial reporting, software, and Buzzing Bee Bookkeeping service terms.
Glossary Terms
Showing 35 terms
Accounts Payable (A/P)
Amounts a business owes vendors or suppliers.
Accounts Receivable (A/R)
Amounts customers owe the business.
A/P Aging
Report showing outstanding vendor obligations by age.
A/R Aging
Report showing outstanding customer balances by age.
ARR
Annual Recurring Revenue; commonly MRR × 12.
Balance Sheet
Statement showing assets, liabilities and equity at a specific date.
Bank Feed
Electronic connection importing financial transactions into accounting software.
Bookkeeping Cleanup
Correction and organization of inaccurate historical accounting records.
Catch-Up Bookkeeping
Completion of bookkeeping for previously uncompleted periods.
Chart of Accounts
Organized list of accounts used to classify financial activity.
Client Portal
Secure system used to exchange information and documents with clients.
Close / Monthly Close
Process of completing, reconciling, reviewing and finalizing a month’s accounting records.
COGS / Cost of Goods Sold
Direct costs attributable to producing goods or services sold.
CRM
Customer Relationship Management system used to manage prospects and client relationships.
Equity
Owner/shareholder residual interest after liabilities are deducted from assets.
FMV
Fair Market Value; the value used to support Honeycomb Exchange™ transactions.
GAAP
Generally Accepted Accounting Principles.
Gross Margin
Gross profit expressed as a percentage of revenue.
Honeycomb Exchange™
Buzzing Bee Bookkeeping’s invitation-only strategic partnership program.
KPI
Key Performance Indicator used to measure business performance.
MFA
Multi-Factor Authentication used to strengthen account security.
MRR
Monthly Recurring Revenue generated by recurring service agreements.
Net Income
Revenue less expenses for the applicable period.
Operating Margin
Operating profit expressed as a percentage of revenue.
P&L / Profit & Loss
Financial statement showing revenue, expenses and profit over a period.
QBO
QuickBooks Online.
QBOA
QuickBooks Online Accountant.
Quality Assurance (QA)
Formal review process designed to detect errors before client delivery.
Reconciliation
Comparison of accounting records to an external statement or source to confirm accuracy.
Recurring Revenue
Revenue expected to repeat under continuing client agreements.
Scope Creep
Work expanding beyond the agreed engagement without corresponding authorization or pricing.
SOP
Standard Operating Procedure.
Transaction Volume
Number of financial transactions processed during a defined period.
Working Capital
Short-term financial resources available to support operations.
Year-End Book Preparation
Final bookkeeping review and organization performed before records are delivered to a tax professional.
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