Accounting Glossary

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Accountant

Your accountant is responsible for working out your asset, liability and capital account entries. They also prepare your tax returns and do all your tax calculations.

Accounts Payable

Accounts payable is a current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it received on credit.

Accounts Receivable

Accounts receivable is a current asset account where a company records the amounts it needs to collect from customers who received goods or services on credit.

Balance Sheet

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

Bookkeeper

Your bookkeeper is responsible for recording and classifying all your transactions. They also produce financial reports for your CPA to review.

Bookkeeping

We properly categorize each of your bank transactions into the proper categories. You get all the data summarized in your Profit and Loss Statement.

Business Corporation Tax Return

You need to file this with the IRS every year to report your profit for tax purposes. (Included in our GROWTH and ENTERPRISE package or Corporate Tax Return Add-On Service)

CPA

Your CPA oversees your bookkeeping team. CPA stands for Certified Public Accountant. CPAs hold the highest professional qualification in accounting.

Cash Basis vs. Accrual Accounting

The difference between cash and accrual accounting lies in the timing of when sales and purchases are recorded in your accounts. Cash accounting recognizes revenue and expenses only when money changes hands, but accrualaccounting recognizes revenue when it’s earned, and expenses when they’re billed (but not paid)

Conversion Balance

A conversion balance is the amount for a particular account as of the conversion date. A conversion date is the date that you start using a new accounting software.

Guaranteed Payment
Income Statement

An income statement is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows. Also known as the profit and loss statement or the statement of revenue and expense, the income statement primarily focuses on company’s revenues and expenses during a particular period.

Notices

These are the letters you receive from the IRS or State Agency about your tax and accounting. Your CPA will respond to the letters on your behalf.

Payroll Tax Return (Form 941 & 940)

You need to file this with the IRS every quarter to report your payroll taxes. (Included in our PAYROLL Service)

Profit and Loss Statement (P&L)

The monthly statement we send you that sets out all your sales and expenses by category. It’s a quick and easy way to see how your company is performing.

Sales Tax Return

Your CPA team will handle the calculations to work out how much sales tax you owe each month. They will submit the sales tax return on your behalf.

Give us a try for free.

Sign up for a trial, and get full access to Xendoo. We’ll do a month of your bookkeeping and provide you with a set of financial statements for free.

How It Works

Say good bye to paper receipts and bank statements. We digitally reconcile your expenses each week and provide you with financial reports so you can stay ahead of your business’s financial health.

Our pricing

Get a full-service accounting solution for one low, flat rate. Each package includes weekly bookkeeping, financial reports and unlimited tax consulting. Additional packages include the corporate tax return and annual tax planning.

What’s included

Unlike other online bookkeeping solutions, Xendoo has CPAs on your team to provide you with unlimited tax consulting. Not only will you be tax ready throughout the year, but we’ll also file your state and Federal tax return.