Accounts payable

Money due from a business to its suppliers.  Also known as creditors.

Accounts receivable

Money due to a business from its customers.  Also known as debtors.

Buyer

A person within a business responsible for procurement of goods and services.

CEO

The person with ultimate responsibility for managing a business unit.  Also known as Managing Director or General Manager.

Closing

Short term for month end closing.

Comparative data

Information used to compare with current accounting information.  Typically will include budget and prior year information.

Continuous improvement

The management approach that makes many small improvements in processes through critical review.  The philosophy is one of preventing errors rather than correcting them after they have happened.

CV

Curriculum Vitae.  A document giving details of a person’s experience, education and work history.  Also known as resumé.

Delayering

A cost cutting approach that involves removing a layer of management or supervision.

General ledger

The master accounting system of a business containing all financial transactions from which accounts are produced.  Also known as nominal ledger.

General Manager

The person with ultimate responsibility for managing a business unit.  Also known as CEO or Managing Director.

Income Statement

Also known as Profit and Loss Account.

Inventory

Goods held in the business for resale or further processing.  Also known as stock..

Managing Director

The person with ultimate responsibility for managing a business unit.  Also known as CEO or General Manager.

Month end closing

The process of preparing management accounts and related information for a business.

Nominal ledger

The master accounting system of a business containing all financial transactions from which accounts are produced.  Also known as general ledger.

Operational managers

Managers responsible for delivering a business’s product or service.

Outsourcing

The technique of contracting with an outside organisation to carry out part of a business’s operations.  Commonly used for backroom operations such as accounting processing or HR.

Pivot tables

A feature of Microsoft Excel that produces summaries of large amounts of data.

Process waste

Raw materials wasted as part of a normal production process.  For example, the ‘bottom of the barrel’ in a brewery.

Production downtime

Time when a production facility is not being used, Eg when being cleaned or during a breakdown.

Profit and Loss Account

Also known as Income Statement.

Purchase ledger

The accounting system that holds details of accounts payable or creditors.

Resumé

A document giving details of a person’s experience, education and work history.  Also known as CV.

Sales ledger

The accounting system that holds details of accounts receivable or debtors.

Stock

Goods held in the business for resale or further processing.  Also known as inventory.

Wrongful trading

When a company carries on trading knowing that it cannot meet its debts.  Carries severe legal penalties in many jurisdictions.