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Glossary Overview

This glossary explains key accounting and financial terms used throughout Fiskl to help you understand your business finances and communicate effectively with your accountant.

Why Use This Glossary?​

Understanding accounting terminology helps you navigate Fiskl confidently, interpret financial reports accurately, and make informed business decisions. Whether you're new to accounting or need a quick reference, this glossary provides clear explanations of essential terms.

What you'll find:

  • Plain-language definitions of accounting terms
  • Examples showing how terms apply to your business
  • Context for how Fiskl uses each term
  • Cross-references to related concepts
  • Practical applications for business owners

How to Use This Glossary​

Browse by category: Each glossary section covers related terms organized by topic for easy reference.

Search for specific terms: Use your browser's search function (Ctrl+F or Cmd+F) to find specific terms quickly.

Follow cross-references: Terms link to related concepts and Fiskl documentation for deeper understanding.

Learn progressively: Start with fundamentals, then explore specific areas as your needs grow.

Glossary Sections​

Accounting Fundamentals​

Essential accounting concepts and principles that form the foundation of financial record-keeping.

Key concepts covered:

  • Accounting methods (cash vs. accrual)
  • Double-entry bookkeeping
  • Debits and credits
  • Chart of Accounts
  • General Ledger
  • Fiscal year and accounting periods
  • Financial reporting basics

Best for:

  • Understanding how Fiskl organizes financial data
  • Learning basic accounting principles
  • Communicating with your accountant
  • Preparing for tax season
  • Making sense of financial reports

Learn more: Accounting Fundamentals

Assets & Liabilities​

Terms related to what your business owns (assets) and owes (liabilities), plus owner's equity.

Key concepts covered:

  • Current and long-term assets
  • Fixed assets and depreciation
  • Accounts receivable
  • Current and long-term liabilities
  • Accounts payable
  • Owner's equity and retained earnings
  • Working capital and liquidity
  • Financial ratios

Best for:

  • Understanding your Balance Sheet
  • Managing cash flow
  • Tracking what you own and owe
  • Assessing business financial health
  • Planning for growth and investments

Learn more: Assets & Liabilities

Cash and Banking​

Banking-related terms and concepts for managing business cash and bank accounts.

Key concepts covered:

  • Bank accounts and transactions
  • Bank reconciliation
  • Cash flow management
  • Payment methods
  • Bank statements
  • Transaction types
  • Account balancing

Best for:

  • Connecting and managing bank accounts
  • Reconciling transactions
  • Understanding cash flow
  • Managing payment processing
  • Keeping accurate records

Learn more: Cash and Banking

Accounts and Transactions​

Terms related to managing financial accounts and recording business transactions.

Key concepts covered:

  • Account types and structure
  • Transaction recording
  • Journal entries
  • Posting to accounts
  • Account balances
  • Transaction categories
  • Account reconciliation

Best for:

  • Recording daily transactions
  • Understanding how accounts work
  • Categorizing income and expenses
  • Maintaining accurate records
  • Preparing for financial reports

Learn more: Accounts and Transactions

Financial Statements​

Terms related to the major financial reports that summarize your business performance.

Key concepts covered:

  • Profit and Loss Statement (Income Statement)
  • Balance Sheet
  • Cash Flow Statement
  • Trial Balance
  • General Ledger Report
  • Revenue and expenses
  • Net profit and net loss

Best for:

  • Understanding financial reports
  • Analyzing business performance
  • Communicating with stakeholders
  • Tax preparation
  • Strategic planning

Learn more: Financial Statements

Common Accounting Concepts​

The Accounting Equation​

The fundamental principle underlying all accounting:

Assets = Liabilities + Equity

This equation must always balance. Everything your business owns (assets) is financed by either borrowed money (liabilities) or your own investment (equity).

Example:

  • Assets: $100,000 (cash, equipment, receivables)
  • Liabilities: $40,000 (loans, payables)
  • Equity: $60,000 (owner investment plus retained profits)
  • Equation: $100,000 = $40,000 + $60,000 ✓

Double-Entry Bookkeeping​

Every transaction affects at least two accounts—one debit and one credit. This system ensures accuracy and balance.

Example transaction: You purchase office equipment for $5,000 cash.

  • Debit: Equipment (asset increases) +$5,000
  • Credit: Cash (asset decreases) -$5,000
  • Result: Total assets unchanged, but composition changed

Debits and Credits​

Assets and Expenses:

  • Debit = Increase
  • Credit = Decrease

Liabilities, Equity, and Income:

  • Debit = Decrease
  • Credit = Increase

This system maintains the accounting equation balance automatically.

Cash vs. Accrual Accounting​

Cash Basis:

  • Record income when received
  • Record expenses when paid
  • Simple and straightforward
  • Good for small businesses

Accrual Basis:

  • Record income when earned (invoice sent)
  • Record expenses when incurred (bill received)
  • More accurate financial picture
  • Required for larger businesses
  • Matches revenue with related expenses

Learn more: Accounting Fundamentals

Financial Statement Overview​

Profit and Loss Statement​

Shows business profitability over a period.

Structure:

  • Revenue (income from business activities)
  • minus Cost of Goods Sold
  • equals Gross Profit
  • minus Operating Expenses
  • equals Net Profit (or Loss)

Use it to:

  • Track revenue and expenses
  • Calculate profitability
  • Compare periods
  • Identify expense trends
  • Support tax filing

Balance Sheet​

Shows financial position at a point in time.

Structure:

  • Assets (what you own)
  • Liabilities (what you owe)
  • Equity (owner's stake)
  • Must balance: Assets = Liabilities + Equity

Use it to:

  • Assess business worth
  • Track assets and debts
  • Monitor liquidity
  • Support loan applications
  • Evaluate financial health

Cash Flow Statement​

Shows cash movements over a period.

Structure:

  • Operating Activities (day-to-day operations)
  • Investing Activities (asset purchases/sales)
  • Financing Activities (loans, equity, distributions)
  • Net change in cash

Use it to:

  • Track cash movements
  • Plan for cash needs
  • Identify cash flow issues
  • Manage working capital
  • Make investment decisions

Learn more: Financial Statements

Key Fiskl Features and Terms​

Chart of Accounts​

Your Chart of Accounts in Fiskl organizes all financial accounts into five main categories:

  1. Assets - What you own
  2. Liabilities - What you owe
  3. Equity - Owner's investment and retained profits
  4. Income - Revenue from business activities
  5. Expenses - Costs of doing business

Learn more: Chart of Accounts

Reconciliation​

The process of matching your Fiskl records with bank statements to ensure accuracy.

Reconciliation steps:

  1. Import bank transactions
  2. Match transactions to Fiskl records
  3. Identify discrepancies
  4. Make corrections
  5. Confirm balances match

Learn more: Reconciliation Overview

Multi-Currency​

Fiskl supports transactions in multiple currencies with automatic conversion to your base accounting currency.

Key concepts:

  • Base currency (your main accounting currency)
  • Transaction currency (currency of specific transaction)
  • Exchange rates (conversion rates between currencies)
  • Realized gains/losses (from actual currency conversion)
  • Unrealized gains/losses (from holding foreign currency)

Tax Tracking​

Fiskl tracks various tax types automatically:

  • VAT/GST - Value Added Tax or Goods and Services Tax
  • Sales Tax - Tax on sales transactions
  • Withholding Tax - Tax withheld from payments
  • Income Tax - Tax on business profits

Learn more: Tax Settings

How Fiskl Uses These Terms​

In the Dashboard​

Accounts Receivable: Outstanding customer invoices Accounts Payable: Unpaid vendor bills Bank Balance: Current cash in connected accounts Net Profit: Bottom line from Profit & Loss Working Capital: Current assets minus current liabilities

In Reports​

P&L (Profit & Loss): Revenue and expense summary Balance Sheet: Assets, liabilities, and equity Trial Balance: All account balances for verification General Ledger: Complete transaction history Cash Flow: Cash movement analysis

In Banking​

Bank Feed: Automatic transaction imports Bank Reconciliation: Matching bank to Fiskl records Bank Statement: Official record from bank Unreconciled: Transactions not yet matched Cleared: Transactions confirmed by bank

In Invoicing​

Invoice: Bill sent to customer Quote: Price estimate for customer Credit Note: Refund or adjustment document Payment: Money received from customer Outstanding: Unpaid invoices

Tips for Learning Accounting Terms​

Start with basics:

  • Focus on Accounting Fundamentals first
  • Understand the accounting equation
  • Learn debit and credit rules
  • Grasp cash vs. accrual concepts

Build gradually:

  • Learn terms as you use features
  • Refer back when reading reports
  • Ask your accountant for clarification
  • Use Fiskl's help documentation

Practice with examples:

  • Apply terms to your business
  • Review actual transactions
  • Generate and read reports
  • Compare to definitions

Use resources:

  • This glossary for quick reference
  • Fiskl documentation for context
  • Your accountant for complex topics
  • Online accounting courses for depth

Common Confusion​

Revenue vs. Income​

Both terms refer to money coming in, used interchangeably in most contexts. Technically:

  • Revenue: Total sales from business activities
  • Income: Can mean revenue, or net income (profit after expenses)

In Fiskl reports, "Revenue" and "Income" both refer to money earned from business activities.

Profit vs. Cash Flow​

Profit (Net Income):

  • Revenue minus expenses
  • Accounting measure of performance
  • May not equal cash available

Cash Flow:

  • Actual cash in minus cash out
  • Measures liquidity
  • Can be positive when profit is negative (and vice versa)

Example: You invoice $10,000 (profit increases) but customer hasn't paid (cash unchanged).

Assets vs. Expenses​

Assets:

  • Resources with future economic value
  • Appear on Balance Sheet
  • Example: Equipment purchase for $5,000

Expenses:

  • Costs consumed in the period
  • Appear on Profit & Loss
  • Example: Office supplies used this month

Accounts Receivable vs. Revenue​

Revenue:

  • Recorded when you invoice (accrual) or receive payment (cash basis)
  • Appears on Profit & Loss
  • Measures income earned

Accounts Receivable:

  • Outstanding invoices not yet paid
  • Appears on Balance Sheet as asset
  • Measures money owed to you

Need More Help?​

Learn accounting basics: Accounting Fundamentals

Understand financial position: Assets & Liabilities

Master bank reconciliation: Cash and Banking

Record transactions: Accounts and Transactions

Read financial reports: Financial Statements

Get started with Fiskl: Getting Started Overview

Configure Chart of Accounts: Chart of Accounts

Generate reports: Financial Reports

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