Bookkeeping Terms Glossary
Adjusting Journal Entry: What It Is & How Bookkeepers Use It
AJEs fix what the bank feed misses: expenses before cash leaves, revenue before cash arrives, depreciation. Here's how bookkeepers use them.
8 min
Current work
SDO CPA LLC
Experience
18 years of experience
Bobby Huang is a partner at SDO CPA. 18 years of hands-on bookkeeping. He still reconciles real client books and built Growthy from the same review-and-approve work bookkeepers do each week.
Published Articles
Adjusting Journal Entry: What It Is & How Bookkeepers Use It
Retained Earnings: What It Is & How Bookkeepers Track It
Bookkeeping Terms Glossary
Retained Earnings: What It Is & How Bookkeepers Track It
Retained earnings is cumulative net income minus distributions. It lives in equity, not cash. Formula, year-end close, and three gotchas.
7 min
Prepaid Expense: What It Is & How Bookkeepers Amortize It
Bookkeeping Terms Glossary
Prepaid Expense: What It Is & How Bookkeepers Amortize It
Cash paid before the expense is incurred. Sits on the balance sheet as an asset until monthly AJEs move it to the P&L.
7 min
Cost of Goods Sold (COGS): What It Is & How Bookkeepers Calculate It
Bookkeeping Terms Glossary
Cost of Goods Sold (COGS): What It Is & How Bookkeepers Calculate It
COGS measures the direct cost of products or services sold in a period. Get the formula, worked examples, and common miscoding mistakes bookkeepers fix.
7 min
Accrued Expense: What It Is & How Bookkeepers Record It
Bookkeeping Terms Glossary
Accrued Expense: What It Is & How Bookkeepers Record It
An accrued expense is cost recognized before cash goes out. Here's how bookkeepers book it, reverse it, and avoid the double-count trap.
6 min
Purchase Order (PO): What It Is & When Bookkeepers See It
Bookkeeping Terms Glossary
Purchase Order (PO): What It Is & When Bookkeepers See It
A PO commits the buyer. It's not a bill until the vendor delivers and invoices. Here's what that means for your books.
11 min
Bill Pay: How Bookkeepers Process Vendor Bill Payments
Bookkeeping Terms Glossary
Bill Pay: How Bookkeepers Process Vendor Bill Payments
Bill pay is how vendor bill payments actually get made. Here's how bookkeepers pick a method, what ACH, checks, and wires cost, and what breaks at scale.
12 min
ACH Payment: What It Is & How Bookkeepers Reconcile It
Bookkeeping Terms Glossary
ACH Payment: What It Is & How Bookkeepers Reconcile It
ACH payments dominate B2B cash flow but arrive with cryptic bank descriptions. Here's how bookkeepers reconcile them without guessing.
8 min
Accounts Payable Aging: What It Is & How Bookkeepers Use It
Bookkeeping Terms Glossary
Accounts Payable Aging: What It Is & How Bookkeepers Use It
The AP aging report sorts open vendor bills into 0-30, 31-60, 61-90, and 90+ day buckets. Here's the month-end workflow and the three gotchas that always trip up bookkeepers.
11 min
Vendor Credit: What It Is & How to Apply It
Bookkeeping Terms Glossary
Vendor Credit: What It Is & How to Apply It
A vendor credit reduces your AP balance. Here's how to apply it correctly and avoid booking it as income by mistake.
8 min
Net 30 Payment Terms: What They Mean for Bookkeepers
Bookkeeping Terms Glossary
Net 30 Payment Terms: What They Mean for Bookkeepers
Net 30 means payment is due within 30 days of the invoice date. Not from when you receive it. Here's what that distinction costs bookkeepers.
10 min
Customer Deposit & Prepaid Revenue: What They Are & How to Record Them
Bookkeeping Terms Glossary
Customer Deposit & Prepaid Revenue: What They Are & How to Record Them
Customer deposits aren't income. They're a liability until the work is done. Here's how to record them correctly.
10 min
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