QuickBooks Online Glossary

QuickBooks Online Glossary: Your Ultimate Guide to Essential Accounting Terms

For business owners, accountants, and bookkeepers, QuickBooks Online (QBO) is a powerful tool that simplifies financial management. To maximize its potential, understanding the key terms and features within QBO is essential. This glossary provides a comprehensive guide to the most important terms and functions in QuickBooks Online.

Why Use This QuickBooks Online Glossary?

Whether you’re a business owner managing finances or an accountant handling multiple clients, knowing the terminology helps streamline your workflow. With this glossary, you can:

Improve efficiency in using QuickBooks Online.

Reduce errors in financial transactions.

Gain clarity on essential accounting terms.

Key QuickBooks Online Terms Explained

1. Accountant Tools: A special dropdown menu available only to accountants using QuickBooks Online Accountant. It includes features like Voided and Deleted Transactions, Reclassify Transactions, and Write Off Invoices.
2. Accounts Payable (A/P): The total amount a business owes to suppliers for goods and services received but not yet paid. It appears as a liability on the balance sheet.
3. Accounts Receivable (A/R): The total amount a business is owed by customers for goods or services provided but not yet paid for. It represents outstanding invoices.
4. Accrual-Basis Accounting: A method where income and expenses are recorded when they are earned or incurred, regardless of when cash is received or paid.
5. Bank Feeds: A feature that connects QuickBooks Online to a business’s bank accounts, allowing automatic transaction imports for easy reconciliation.
6. Chart of Accounts: A categorized list of financial accounts used to track transactions. QuickBooks Online provides a default chart of accounts, which can be customized.
7. Closing the Books: A process that locks past financial transactions to prevent changes, ensuring data integrity for tax filing and financial reporting.
8. Reconciliation: The process of matching QuickBooks Online transactions with bank statements to ensure accuracy in financial records.
9. Invoice: A sales form sent to customers requesting payment for products or services provided. It includes payment terms and due dates.
10. Vendor Credit: A record of a refund or credit from a vendor, which can be applied to future purchases or bill payments.
11. Undeposited Funds: A temporary account that holds received payments before they are deposited into the business’s bank account.
12. Recurring Transactions: A feature that automates repetitive transactions, such as monthly invoices or expenses, to save time.
13. Profit and Loss Report: A financial statement summarizing revenue, expenses, and net income over a specified period, providing insights into business performance.
14. Journal Entries: Manual entries used to adjust accounts and record debits and credits in the general ledger.
15. Custom Fields: Personalized data fields that allow businesses to categorize transactions and reports based on unique criteria.

How Fanoos Accounting Services Can Help

At Fanoos Accounting Services, we specialize in helping businesses optimize their use of QuickBooks Online. Whether you need assistance with setup, bookkeeping, or financial reporting, our team is here to support you.

If you want to take full advantage of QuickBooks Online, Click here to download the QuickBooks