Glossary of terms that every accountant needs to know

Key quotes:

• "The SEC (Securities and Exchange Commission ) defines an accredited investor as, “A natural person with income exceeding $200,000 in each of the two most recent years or joint income with spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.” In layman’s terms, it is a rich individual potentially interested in investing in your company."
• "Equity crowdfunding is just like regular crowdfunding but instead of getting money in return for a fee, you pay a fee to the crowdfunding site and a % of the company to investors."
• "The key here is to tempt your users with the low price or free offer and once you have acquired them, focus on how you can get repeat business from them."
• "When an investor puts money into a company, he wants to know what he will get out."

Key quotes:

• "Producer (aka Manufacturer, Seller, Vendor, or Supplier): In the context of this website, these terms are used interchangeably to refer to a company that sells its products to wholesale buyers at wholesale prices."
• "Purchase Order (aka PO): A document that a retailer submits to a wholesaler, detailing the products and quantities that they’d like to buy, along with the prices they expect to pay and their desired delivery window."
• "Free Fill: This is a common condition of selling into large, multi-door retailers, in which new vendors are required to provide a free opening order of one case per sku per store."
• "Some wholesaler producers choose to set their CPQ to one unit (aka an “individual pack”), thus enabling retailers to order any quantity that they want."
• "Private Label: An arrangement whereby a wholesale producer manufactures a product for a retailer using the retailer’s packaging and branding, which the retailer then has the exclusive right to market and sell as its own."
• "Small retailers who don’t scan products at their POS may not require UPCs."

Key quotes:

• "I have been working with leadership in companies for a long time, and everyday managers make decisions that affect their company’s financial performance — whether it is scheduling operations, hiring and firing personnel, preparing a budget, approving a capital investment, or sending an invoice for payment."
• "Often these managers lack the basic financial skills to allow them to understand the financial implications of their decisions."
• "An understanding of the financial statements will provide you with the basic terminology needed to communicate with your accounting and finance personnel."
• "Do I understand how to use this report to improve the financial and operational performance for my areas of responsibility? They should identify how a project will affect particular line items on the balance sheet and the income statement and and the impact on the financial performance of the site or the company if the financial objectives of the project are not met."
• "Managers should understand the financial implications of their decisions and how to use financial information to improve their company’s performance."

Key quotes:

• "I call it ‘Drive By’ because if it’s fast, quick and easy and you have a bit of fun along the way, you just might start to feel differently about the personality, the magic and — the power behind your brand! TERM #1 | BRAND ESSENCE All Good Brands have a Big Heart If you’re the vision master of your brand, you’re certainly steering the future of your business and guiding the myriad of daily business transactions."
• "Remember, the best thing about branding your business is that it puts you in a different league, differentiates you from the rest of the pack."
• "It’s about uncovering what your business is really all about, looking at your brand strategy, story and style of communication."
• "(How many on your team?) TERM #5: BRAND GUIDELINES All Good Brands need to Stay On Track Sure, some rules we hate."
• "Well, if your business is starting to fade a little, look pale or act listless (yes, it happens), you might want to think about a bit of brand revitalization."

Key quotes:

• "Catch-up Contributions: Catch-up contributions help individuals who are age 50 and older save more for retirement by contributing more each year through their retirement investment plans, such as 401(k)s and IRAs."
• "Certificate of Deposit (CD): A certificate of deposit is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions."
• "Also called “fiduciary obligation.” Financial Advisor: A financial advisor is a professional who helps individuals manage their finances by providing advice on different financial areas such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement."
• "Retirement Income: The amount of money an individual earns after retiring based on retirement savings assets, Social Security allowances, pensions, stocks, mutual funds, savings accounts, CDs, home equity funds, annuities, insurance, rental income, and any other form of monetary investment used to pay for retirement."