Bookkeeping Glossary
Plain-language definitions of the accounting terms you will see in Fynance.
You do not need to be an accountant to use Fynance. These are the terms you will see most often.
| Term | What it means |
|---|---|
| Bookkeeping | Recording every money movement of your company in the right category, so you know how the business is doing. |
| Transaction | Any money that comes in or goes out of an account, such as a sale, a payment or a fee. |
| Category (account) | The label that says what a transaction is, such as Sales Revenue or Software & Subscriptions. The full list is your Chart of Accounts. |
| Pending review | A transaction Fynance imported but you have not confirmed yet. It is not in your reports. |
| Confirmed | A transaction you checked. It counts in your reports. |
| Transfer | Money moving between two of your own accounts. It is not revenue or an expense. |
| Revenue (Income) | Money your company earns from its clients. |
| Expense | Money your company spends to operate, such as software, ads or contractors. |
| Cost of Goods Sold (COGS) | Costs directly tied to what you sell, such as products or fulfillment. |
| Net Income | Revenue minus all costs and expenses. Your profit (or loss) for the period. |
| Profit & Loss (P&L) | The report that shows revenue, expenses and net income for a period. |
| Balance Sheet | The report that shows what the company has (assets), owes (liabilities) and what belongs to the owners (equity) on a date. |
| Asset | Something the company owns, such as cash in the bank or equipment. |
| Liability | Something the company owes, such as a credit card balance or a loan. |
| Equity | The owners' share of the company: what they put in plus profits kept in the business. |
| Member's Contributions | Money an owner puts into the company from personal funds. |
| Member's Draws / Distributions | Money an owner takes out of the company for personal use. |
| Opening balance | The balance of an account on the first day Fynance starts tracking it. |
| Cash basis | Recording income when money arrives and expenses when money leaves. The method Fynance uses (see Cash Basis Accounting). |
| Accrual basis | Recording income when you invoice and expenses when you are billed, even before money moves. Not used by Fynance. |
| Invoice | A bill you send to a client asking for payment. |
| Payout | When Stripe sends the money it collected to your bank account. |
| 1099 | A US tax form used to report payments to US contractors (see Paying Contractors). |