This autumn I decided to use some of my social media posts to go back to basics and give people a refresher on the meanings of some terminology that accountants throw around all the time. When you live in the accounting world you are surrounded by this terminology, so sometimes it's easy to forget that it doesn't always come naturally or isn't as familiar to other people, as it may be to you! As we come to the end of this half-term, I have pulled them together below.
First, I covered a basic definition for Income...
And then moved on to a basic definition for Expenses and started to introduce some ways in which expenses can be classified...
From here I picked out just one of these ways to classify expenses; Direct vs Indirect costs and covered some definitions of these...
Finally, I covered some definitions for profit and combined info from the other 3 videos to give some examples of what a basic profit & loss report could look like...
Hopefully it's been helpful for some and if nothing else, I have been able to use them as a learning tool for one of my teenagers!
Please do let me know if there is anything else you would like me to cover - I have got some more ideas in the pipeline and I am happy to take suggestions.
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