| A | B |
|---|
| Bookkeeping | The recording and organizing of financial transactions. |
| Financial Transaction | Any event where money enters or leaves a business, or where the business gains or owes something of value. |
| Income | Money received or earned by the business. |
| Expense | A cost required to operate the business and earn revenue. |
| Payment | Money received by the office from a patient, insurer, provincial health plan, or other payer. |
| Claim | A request submitted for payment from a provincial Medicare plan, insurer, workers’ compensation organization, or other payer. |
| Deposit | Money placed into a bank account. |
| Outstanding Balance | An amount that has not yet been paid. |
| Financial Report | A report that summarizes financial information for review and decision-making. |
| Accounting | The analysis and interpretation of financial information, often used for statements, tax documents, performance review, and advice. |
| Bookkeeper | A person who creates and maintains financial records. |
| Accountant | A person who uses financial records to prepare statements, complete tax documents, analyze performance, and provide financial advice. |
| Account | A category used to organize and track a specific type of financial activity. |
| Asset | Something the business owns that has value, such as cash, equipment, inventory, or accounts receivable. |
| Liability | An amount the business owes, such as loans, unpaid bills, credit card balances, or accounts payable. |
| Owner’s Equity | The owner’s financial interest in the business after liabilities are considered. |
| Equity | The owner’s financial interest in the business. |
| Basic Accounting Equation | Assets = Liabilities + Owner’s Equity. Must remain balanced (if one part changes, another part must also change) |
| Revenue | Money earned from providing services or selling products. |
| Net Income | Revenue minus expenses. |
| Profit | A positive financial result when revenue is greater than expenses. |
| Net Loss | A negative financial result when expenses are higher than revenue. |
| Source Document | Written or electronic proof that a financial transaction occurred. |
| Receipt | A source document that provides proof of a purchase or payment. |
| Invoice | A document requesting payment for goods or services. |
| Bank Statement | A source document from the bank showing account activity for a specific period. |
| Cheque | A written order directing a bank to pay money from an account. |
| Deposit Slip | A document that summarizes money being deposited into a bank account. |
| Supplier Bill | A document showing money owed to a supplier for goods or services. |
| Patient Payment Record | A record documenting payment received from a patient. |
| Remittance Statement | A statement from an insurer or provincial health plan showing payment details. |
| Journal | A chronological record of financial transactions recorded in the order they occur. |
| Journal Entry | A record that includes the transaction date, affected accounts, amount, and explanation or source document reference. |
| Chronological Record | A record organized by date in the order transactions occur. |
| Ledger | A record that organizes transactions by account rather than only by date. |
| Posting | Transferring information from the journal to the ledger. |
| Ledger Account | A page or item in the ledger used to track activity and balances for one category. |
| Debit | A left-side entry into an account; assets generally increase with debits. |
| Credit | A right-side entry into an account; liabilities, owner’s equity, and revenue generally increase with credits. |
| Double-Entry Bookkeeping | A bookkeeping approach where every transaction affects at least two accounts. |
| Total Debits | The total amount of debit entries in a transaction or set of records. |
| Total Credits | The total amount of credit entries in a transaction or set of records. |
| Accounts Receivable (A/R) | Money owed to the business by customers, patients, insurers, or other payers. |
| Patient Balance | An amount owed by a patient. |
| Provincial Medicare Reimbursement | Payment owed or received from a provincial Medicare plan. |
| Cash Flow | The movement of money into and out of the business. |
| Accounts Payable (A/P) | Money owed by the business to suppliers, vendors, or service providers. |
| Supplier | A business or person that provides goods or services to the office. |
| Vendor | A seller or supplier of goods or services. |
| Credit Purchase | A purchase made now with payment to be made later. |
| Late Fee | An added charge that may result from paying a bill late. |
| Interest Charge | A cost added when money is owed or payment is delayed. |
| Financial Statement | A formal summary of financial activity or financial position. |
| Income Statement | A financial statement that summarizes revenue and expenses over a specific period and shows profit or loss. |
| Balance Sheet | A financial statement that summarizes assets, liabilities, and equity at a specific point in time. |
| Statement of Cash Flows | A financial statement that summarizes cash moving into and out of the business. |
| Bookkeeping Software | Software that helps organize and automate financial records but does not eliminate the need for bookkeeping knowledge. |
| Cash Basis Accounting | An accounting method that records transactions only when cash changes hands. |
| Accrual Basis Accounting | An accounting method that records transactions when they occur. |
| Internal Controls | Procedures designed to help prevent fraud, errors, and misuse of funds. |
| Accounts Receivable Management | Tracking money owed to the business and following up so payments are collected on time. |
| Accounts Payable Management | Tracking bills and due dates so the business pays amounts owed on time. |
| Financial Health | The overall financial condition of a business. |
