Bookkeeping Basics

A collection of bookkeeping and accounting terms, concepts, and acronyms to give you a broad understanding of what it is all about!

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Burn Rate

The speed at which cash is used by a business that is operating at a loss

Fixed Cost 📏

A cost that does not change with your volume of sales.

Variable Costs 🎚

A cost that changes with your volume of sales.

Credit ↕️

Represents an increase in an equity or liability account, or a decrease in an expense or asset account.

Overhead 🛖

Expenses that relate to running the business and are not tied to a product/service.

Debit ↕️

Represents an increase in an expense or asset account, or a decrease in an equity or liability account.

Runway

The amount of time you have left until you have used all your cash reserved