Glossary
Bookkeeping words, explained simply
Turnover
All the money your business takes in before any costs.
Português (Portugal): Volume de negócios
Profit
What is left after you take business costs away from turnover.
Português (Portugal): Lucro
Allowable expense
A business cost that can normally be counted against your income.
Português (Portugal): Despesa dedutível
Receipt
Proof that you paid for something — keep it with the record.
Português (Portugal): Recibo
Invoice
A request for payment you send to a customer.
Português (Portugal): Fatura
VAT
A tax added to most goods and services once you are registered.
Português (Portugal): IVA
Tax year
The 12-month period your records are grouped into.
Português (Portugal): Ano fiscal
Sole trader
You run the business as an individual and keep the profits.
Português (Portugal): Trabalhador independente
Cash basis
Recording money when it actually moves in or out.
Português (Portugal): Regime de caixa
Mileage
Business travel by vehicle, recorded by distance and reason.
Português (Portugal): Quilometragem
Reconciliation
Checking your records match your bank statements.
Português (Portugal): Reconciliação
Balance sheet
A snapshot of what the business owns and owes.
Português (Portugal): Balanço
Cash flow
The timing of money coming in and going out.
Português (Portugal): Fluxo de caixa
Overdue
An invoice that has passed its payment date.
Português (Portugal): Em atraso
🇬🇧 United Kingdom — official terms
The term as the authority writes it, your translation, and a simple explanation. Change your jurisdiction in Profile.
Self Assessment
The UK system where you report your own income to HMRC once a year instead of it being taken automatically from a wage.
Allowable expenses
Costs of running the business that can normally be taken off your income before tax is worked out.
UTR (Unique Taxpayer Reference)
The ten-digit number HMRC uses to identify you as a taxpayer.
General explanations to help you understand your records. They are not tax or legal advice.