Accounting
term that refers to the overall process of tracking your business's income and expenses, and then using these numbers in various calculations and formulas to answer specific questions about the financial and tax status of the business.

Balance Sheet
A statement listing a business's assets, liabilities, and net worth, or equity.

Accrual Method Of Accounting
In the context of a financial audit, audit findings represent weaknesses or deficiencies in internal controls, or instances of noncompliance with applicable laws and regulations, that are presented in an audit report.

Cash Letter
A group of checks accompanied by a paper listing sent to a clearinghouse, a Federal Reserve Bank, or another institution. A cash letter contains a number of negotiable items, mostly checks, accompanied by a letter that lists the amounts and instructions for transmittal to another bank. May also be called a transmittal letter.

Receipt
A written record of a transaction.

Compliance Audits
Compliance audits are internal or external audits performed to evaluate whether systems or processes are designed and operating effectively to ensure compliance with pertinent laws, rules, regulations, and internal policies and procedures

Accounts Receivable
Amounts owed to a business that the business expects to receive.

Invoice
A written record of a transaction, often submitted to a customer or client when requesting payment.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Double-Entry Accounting
A system of accounting that records each business transaction twice.