Recording, classifying, and summarizing financial transactions

  Recording income/expenses when incurred, not when paid   

  Recording transactions when cash is exchanged

  Money owed to suppliers  

Money owed by customers   

  Main record of all financial transactions   

  Summary of all ledger balances   

Record of a financial transaction  

  List of all financial accounts   

Left side of accounting entry   

  Right side of accounting entry   

  Every transaction affects two accounts   

  Accounting period (usually 12 months)   

  End-of-period adjustments   

  Beginning balance of accounts   

  Transfer between accounts   

Matching records with actual balances   

   Record of all changes in accounting system

  Daily recording of transactions   

  Transferring entries to ledger   

  Tools used to manage accounts   

  Online accounting system

  Unit for tracking costs  

  Unit for tracking profit  

  Summary of financial data  

  Steps from recording to reporting   

   Entry made for corrections  

  Reduction in asset value  

  Spreading intangible cost over time  

Estimated expense  

Expense incurred but not paid   

   Expense paid in advance

Recording income when earned  

Matching expenses with revenue   

Business will continue  

Importance of financial information  

Same methods used over time  

Avoid overstatement of income  

Match income with expenses   

Full financial transparency   

Tracking cost per project

  Categorization of project costs   

Ongoing project costs   

  Amount withheld until completion

   Billing based on work completion

  Modification to project scope   

  Total agreed project amount  

  Project budget  

   Real incurred cost

  Cost exceeding budget  

  Billing less than work completed  

   Billing more than work completed

   Remaining project cost

  Work yet to be completed

   Outsourced project worker

  Cost directly linked to project  

Overhead expenses   

  Site-related indirect costs  

  Profit from a project  

  List of materials & costs   

   Request for materials

   Assigning labour cost to job

  Unproductive labour hours  

Timeline for project completion   

Value of completed work  

  Difference between planned & actual cost

Delay or early completion   

Financial records per site   

  Planning project finances

  Managing project expenses

  Final work items

  Initial setup cost

Closing project cost   

Dispute for additional payment  

Penalty for delays   

Billing at project stages   

Fully delivered project   

Distributing expenses  

Job-specific accounting  

  Performance comparison

Materials and goods held for use in construction projects.  

  Determining the financial value of inventory.  

Oldest stock is used first for costing.  

  Average cost method used for inventory valuation.  

Measures how quickly inventory is used or sold.   

Stock level at which new inventory must be ordered  

  Lowest quantity required to avoid shortages   

  Highest stock limit to prevent overstocking.

   Extra stock kept to prevent unexpected shortages.

  Analysis of inventory based on how long it is held

  Inventory that is no longer usable or sellable

  Inventory used infrequently  

Inventory used or sold quickly.   

  Quantity of materials used in a project

  Releasing inventory for project use

Recording incoming inventory from suppliers.  

  Movement of inventory between locations/sites.

  Control of storage, handling, and movement of materials.

Tracking inventory by lot or batch number.   

  Tracking individual items with unique IDs.

  Correction of stock differences.

Loss of inventory due to theft, damage, or errors.  

Inventory damaged and unusable.   

Excess or inefficient use of materials.   

Matching physical stock with records  

  Record of all inventory transactions.

  Specific storage location within a warehouse.

  Managing stock levels and usage efficiently.

  Process of purchasing materials or services.

Managing supplier relationships and performance.  

Shows income, expenses, and profit over a period.  

  Snapshot of assets, liabilities, and equity.

Tracks cash inflows and outflows.   

  Revenue minus direct project costs.  

Final profit after all expenses.  

Earnings before interest, tax, depreciation, and amortization.  

Profit from core operations as a percentage of revenue.

Net profit as a percentage of revenue.  

  Level where revenue equals total costs.  

  Revenue remaining after variable costs.

  Direct costs of completing projects.

   Current assets minus current liabilities.

  Ability to meet short-term obligations.

  Liquidity excluding inventory.

  Measure of financial leverage.

  Profit generated from investment.

  Profit relative to total assets.

Profit relative to owner’s equity.   

Metrics used to evaluate financial performance.  

  Planning future income and expenses

  Predicting future financial performance.

  Comparing actual vs planned performance.

  Spending on long-term assets.

Day-to-day business expenses  

  Costs that remain constant regardless of activity.

Costs that change with project activity.   

  Costs with both fixed and variable elements.

  Composition of fixed and variable costs.

  Strategy for managing finances effectively.

Creating financial projections using data.  

Indirect tax on goods and services. ​ 

     Tax paid on purchases that can be claimed.  

Tax collected on sales.  

  Tax deducted at source from payments.  

Advance tax deducted on payments.  

   Tax paid before the financial year ends.

   Examination of financial records for compliance.

  Adhering to laws and regulations.   

  Submitting required reports to authorities  

  Document requesting payment for goods/services.

  Adjustment reducing customer invoice value  

  Adjustment increasing customer invoice value.  

  System for processing online payments.

  Instant digital payments system.  

  Matching bank records with accounting records.

  Managing inflow and outflow of cash.   

   Managing customer credit risk.

  Time taken to collect receivables.  

   Conditions for payment timelines.

   Date by which payment must be made.

  Payment not received by due date.

   Uncollectible receivables.

   Removing bad debts from accounts.

   Estimated future bad debts.

  Penalty for delayed payments.

Charges for non-compliance.   

  Following financial regulations

  Mandatory audit required by law.

  Internal review of financial processes

  Identifying and controlling financial risks

Determining the value of a business  

  Valuation based on future cash flows.  

Value of future cash flows today.   

   Rate of return on investment.

Evaluating long-term investments.  

Use of debt to increase returns.   

  Impact of fixed costs on profit  

  Testing impact of variable changes

   Evaluating different financial scenarios.

  Reducing expenses without affecting quality.

Increasing profit margins.   

   Maximizing overall profitability.

  Expanding operations efficiently

  Long-term financial planning approach.  

Metric used to measure performance.   

  Management Information System reports for decision-making.   

  Visual representation of key metrics.

  Using technology to reduce manual work.   

Connecting multiple systems into one platform.  

  Using technology to improve business processes.   

  Analyzing financial data for insights.

  Forecasting future trends using data.   

Comparing performance with industry standards.  

  Indicators used to measure efficiency.    

Processes to ensure accuracy and compliance.  

  Safeguards against errors and fraud.  

Measures to prevent financial fraud.   

  Decreasing expenses strategically.   

Improving productivity and output.  

  Improving value by optimizing cost and performance