Defining Accounting Terms

Video Transcript

"This is financial planner Patrick Munro talking about "Defining Accounting Terms". Accounting terms are important to the business person as well as the accountant as well, so that they can talk the same language. One of the main things that an individual has to be aware of is the term called the budget. Every company has one; in fact, every individual should have a budget. Also the Profit and Loss Statement is key and paramount to every business. Knowing how much profit that they made and how much loss could also come upon the business as well. This is usually a result of the Cash Flow Statement. Every business needs to know how much money is coming into the company and how much money is being required to pay outside the company to produce their goods and services. This is a direct result of expenses. Expenses is another term, an accounting term as well, and it's important to keep your expenses low and your cash flow high, resulting in profit and therefore a successful business. This is financial advisor Patrick Munro talking about "Defining Accounting Terms"."