{"id":62575,"date":"2022-04-27T16:48:24","date_gmt":"2022-04-27T23:48:24","guid":{"rendered":"https:\/\/honeybook-v2.site.strattic.io\/?p=62575"},"modified":"2023-02-14T17:38:15","modified_gmt":"2023-02-15T01:38:15","slug":"small-business-financial-literacy","status":"publish","type":"post","link":"https:\/\/hbb.dev.reliablepenguin.com\/blog\/small-business-financial-literacy","title":{"rendered":"Small business financial literacy: 19 terms to know"},"content":{"rendered":"\n

Improve your small business financial literacy with these 19 definitions! Whether you do your own bookkeeping or employ an accountant, knowing these terms can keep you better organized and focused on your financial health.<\/em><\/p>\n\n\n\n

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You don\u2019t have to be a bookkeeper or accountant to be financially literate in your business! In fact, most entrepreneurs should focus on small business financial<\/a> literacy whether or not they have a strong involvement in their finances. <\/p>\n\n\n\n

It is also never too late to become more financially literate, even if you\u2019re just starting your business or you\u2019ve been operating for years. To help, we\u2019ve put together 19 financial terms to know. Bookmark this page to keep the terms on hand and refer to them as you conduct your bookkeeping or analyze financial reports<\/a>. <\/p>\n\n\n\n

Why is financial literacy important in business?<\/h2>\n\n\n\n

Even if you have an accountant to handle most of your financial needs, it\u2019s still important to be financially literate as a business owner. By understanding the basics, you can have more productive conversations with your financial advisors. You\u2019ll also be able to make more well-informed decisions based on your financial reports. <\/p>\n\n\n\n

Financial literacy is also important for filing your taxes<\/a>. Beyond knowing what forms and numbers to collect, actually understanding what they mean will help you better prepare. You can count on fewer surprises and frustration as you file your taxes and get your return or see what you owe. <\/p>\n\n\n\n

Overall, business financial literacy empowers you to make better decisions for your business. <\/p>\n\n\n\n

19 financial terms and definitions for business owners<\/h2>\n\n\n\n

Below, we\u2019ve defined 19 financial terms that business owners should know. Keep in mind that this is not an exhaustive list of small business terms, and you should always consult a professional accountant if you don\u2019t understand what something means and the financial implications on your business. <\/p>\n\n\n\n

Bookkeeping<\/h3>\n\n\n\n

Bookkeeping<\/a> is simply the process of recording your finances. It includes recording your assets, liability, and equity.<\/p>\n\n\n\n

Assets<\/h3>\n\n\n\n

Your assets include anything you own that has cash or other value for your business. Assets include cash, inventory, investments, property, intellectual property, and more. In simple terms, your assets equal your liabilities plus your equities. <\/p>\n\n\n\n