Wavu Business’s small business glossary presents a list of popular business terms ranging from business taxation, small business funding, sales, and management, just to name a few. Looking for a small business glossary? Wavu Business SME glossary terms help entrepreneurs meet their knowledge needs.
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- Accounting System
- An accounting system is similar to a bookkeeping or POS system except that it allows you to record, analyze, report and verify the results of financial transactions. While POS systems and bookkeeping systems only record and store financial records, an accounting system analyzes the records and gives financial reports
- Accrual Accounting
- Accrual accounting is an accounting term where entrepreneurs have to match their income/ revenue with their expenses even when the cash may not have been collected. For instance, let says John owns a small business, John decided to do basic book keeping and accounting for his business by calculating all the revenues made in that month and the expenses even for customers who took items on credit.
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- Beneficial Owner
- A beneficial owner refers to a person who enjoys the rights of a company. A beneficial owner includes a person who have substantial control over a company and also owns at least 25 percent of the company.
- Bookkeeping
- Book keeping is the practice of recording a company’s transactions on a regular basis. For example, if Mary owns a salon, she would engage in bookkeeping by recording her daily expenses and daily revenues. Mary can perform book keeping operation online through a book keeping software or via a bookkeeping manual.
- Business Permit
- A Business permit is a business license issued by your local government to legalize or allow you to do business in your location
- Business Plan
- A business plan is a document that outlines all aspects of your business and it includes the marketing plan, financial plan, executive summary etc.
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- Cash Basis Accounting
- Cash basis accounting is an accounting approach where entrepreneurs and accountants record revenue on the income statement only when it is received. For example, let’s say Joyce owns a small salon or barber shop, Joyce is serving two customers; A and B. Customer A pays in cash and customer B promises to pay the following day. Joyce will only record the payment from Customer A as income and wait for customer B’s payment for recording.
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- POS System
- POS stands for Point of Sale system. A POS system is a system that helps small businesses collect payment from their customers
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- Small Business Bank (SME Bank)
- A small business bank is a bank that is dedicated to helping small businesses manage their money, and save and invest their money. A small business bank helps entrepreneurs or small business owners keep their business operations separate from their personal ones.
- Small Business Loan (SME Loan)
- A business loan is money borrowed by entrepreneurs for support their business. Small business loans can be lines of credit, cash advance, invoice discounting among others. Business loans come from different sources.
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