Jargon Buster

At Finton Doyle, our priority is making sure we go that extra step to making our client as content and happy as possible. One thing that we try to install in all of our clients is an understanding of their own account, as a means of helping to make our relationship as smooth as possible. For those of our clients not from a business background, the terminology you are faced with can quite often be confusing and difficult to dissect. For the purpose of helping to de-mystify the jargon used within the world of accounting and to help you understand us, we have devised a simple glossary of terms.

Balance Sheet Terminology

A balance sheet is an accounting statement showing a firms total assets and liabilities at a particular date in time. In simpler terms the balance sheet shows a snapshot of a firm’s financial position. Below are terms associated with this type of account. Fixed Assets – A fixed asset is an asset…

Profit/Loss Account Terminology

A profit and loss accounts is a record of a firms trading over a period of time, typically 1 year. The profit and loss accounts balances the difference between the income and outgoing of the business and thus determines the profit. Below are terms associated with profit and loss. Turnover –The…

Tax Related Terminology

Income Tax – Income tax is a direct tax placed on the income received by an individual. As income goes up so does the amount of tax payable. Not all income is taxable. At present in the UK the first £9,440 of income is not taxable. Therefore if an individual earns…

Business Related Terminology

Private Limited Company (LTD) – A Private Limited Company (LTD) is a business that is owned by its shareholders, run by directors and most importantly one whose liability is limited. Limited liability means that the investors in the company can only lose the money they have invested and no more. Unlike…