CPB Bookkeeper key terms

A bookkeeping system that records each transaction in at least two accounts so total debits always equal total credits, keeping the accounting equation in balance and making errors easier to find.

A numbered, organized list of every account a business uses to sort its transactions into categories such as assets, liabilities, equity, income, and expenses; it shapes how reports are built.

The master record that holds every account from the chart of accounts together with all posted transactions and running balances, and serves as the source for financial statements.

A dated record of one transaction listing the accounts affected, the amount debited and credited to each, and a short explanation; once posted it updates the general ledger.

A listing of every account balance at a given date with debit and credit columns that should total the same, used to catch posting mistakes before statements are prepared.

A method that reports revenue when it is earned and expenses when they are incurred, whether or not cash has moved, so each period's income is matched to its costs.

A method that reports revenue only when cash is received and expenses only when cash is paid, which is simple to keep but can distort results across periods.

The routine of comparing the company's cash records with the bank statement and explaining differences like outstanding checks, deposits in transit, and bank fees until the two balances agree.

A period-end journal entry that brings accounts up to date for items not yet recorded, such as unpaid wages, used-up prepaid insurance, depreciation, or revenue earned but not billed.

Money customers owe for goods or services already delivered and invoiced, tracked customer by customer and reported as a current asset until collected.

Money the business owes suppliers for purchases or services already received but not yet paid, tracked vendor by vendor and reported as a current liability.

Spreading the cost of a long-lived asset such as equipment or a vehicle over the years it helps earn revenue, instead of expensing the full purchase price at once.

A financial statement at a single date listing what the business owns, what it owes, and the owner's remaining claim, proving that assets equal liabilities plus equity.

A financial statement covering a period of time that subtracts expenses from revenue to show profit or loss; many businesses call it the profit and loss report.

Policies and procedures such as approvals, reconciliations, and separating duties so that no one person controls a transaction from start to finish, protecting assets and keeping records reliable.

Intuit's cloud-based accounting program, accessed through a browser or mobile app, where the bookkeeper and the client can work in the same company data at the same time.

A QuickBooks feature that pulls transactions from a connected bank or card account into the software so each one can be reviewed, categorized, matched to an existing entry, or added.

A holding account in QuickBooks where customer payments wait after being recorded until a single bank deposit is entered, at which point the payments are cleared out together.

A temporary equity account QuickBooks uses when you enter starting balances for accounts, customers, or vendors during setup; a correct setup leaves it at zero.

A QuickBooks record showing which user created, edited, or deleted a transaction and when, useful for tracing mistakes and supporting internal controls.

A saved QuickBooks template that automatically creates the same entry, such as a monthly rent bill or a repeating invoice, on a schedule you set.

A QuickBooks feature that tags transactions with labels for departments, locations, or product lines so you can report on each segment without keeping separate company files.

A document that reduces the amount a customer owes, issued for a return, an allowance, or a billing correction; it can be applied to an open invoice or refunded.

The QuickBooks list of items you sell, where each item is linked to an income account and, for inventory, to the accounts that track stock value and cost of goods sold.

The total an employee earns in a pay period before anything is taken out, including regular wages, overtime, bonuses, commissions, and paid leave.

The amount actually deposited to an employee after federal and state taxes, Social Security and Medicare, benefit premiums, and other deductions are subtracted from gross pay.

Federal Insurance Contributions Act taxes that fund Social Security and Medicare; employer and employee each pay a matching share, with Social Security capped at an annual wage limit.

Federal Unemployment Tax Act tax paid by the employer only, calculated on the first portion of each employee's wages and reported annually on Form 940.

The quarterly federal payroll return on which an employer reports total wages, federal income tax withheld, and both the employee and employer shares of Social Security and Medicare tax.

The annual statement sent to each employee and to the Social Security Administration showing wages paid and taxes withheld for the year; it is due to employees by January 31.

The form an employee fills out for the employer showing filing status, dependents, and other adjustments so the right amount of federal income tax is withheld from each paycheck.

An information return filed to report nonemployee compensation of $600 or more paid during the year to an independent contractor, with a copy sent to the contractor.

The classification decision based on how much control the business has over the worker's behavior, finances, and relationship; employees get withholding and benefits, while contractors receive 1099s and pay their own taxes.

Paying full attention to a speaker, restating what you understood, and asking clarifying questions instead of planning your reply, so the client feels heard and errors are caught early.

A written agreement signed before work starts that spells out the services to be performed, who is responsible for what, the fees, and the limits of the engagement.

The professional duty to keep a client's financial and personal information private, sharing it only with people authorized by the client or as the law requires.

A questioning attitude that verifies information and follows up on records that look unusual instead of accepting explanations at face value.

Feedback that describes a specific behavior and its effect, then suggests a concrete improvement, focusing on the work rather than on the person's character.

A situation in which a bookkeeper's personal, family, or business interests could improperly sway professional judgment, which should be disclosed and, where possible, avoided.