Terminology

Submitted by sylvia.wong@up… on Tue, 05/03/2022 - 23:43
  • Australian Business Number (ABN): A number that a business uses to identify themselves when dealing with other business or with government. 4
  • Accounts payable: a record of all unpaid short-term (less than 12 months) invoices, bills and other liabilities. Examples of accounts payable include invoices for goods or services, bills for utilities and tax payments due. 5
  • Australian Taxation Office (ATO): is the principal revenue collection agency of the Australian Government. 6
  • Bad debts: Debt which is unlikely to be paid. Bad debts may usually be treated as losses and written off against a reserve for such debts. 7
  • Bookkeeping: the process of recording the financial transactions of a business. 5
  • Budget: a listing of planned revenue and expenditure for a given period. 5
  • Business Activity Statement (BAS): A form some businesses use to report and pay their taxes such as goods and services tax (GST) and pay as you go (PAYG). This form can also be called an Activity Statement. 4
  • Financial year: In Australia, the financial year is from 1 July to 30 June.
  • Instalment Activity Statement (IAS): is a form used by taxpayers who are not registered for Goods and Services Tax (GST). It is also the form required to be lodged by entities that prepare a quarterly Business Activity Statement. 8
  • Lodgement: Sending prepared documents, such as your tax return or Business activity statement, to the Australian Taxation Office (ATO). 4
  • Pay as you go (PAYG) withholding: When an employer pays their employees or contractors they hold back (withhold) some money, which is the tax amount. The employer then sends the tax to Australian Tax Office (ATO). 4
  • Reconciliation: is the process of comparing internal financial records against monthly statements from external sources. 9
  • Revenue (also known as turnover): the amount earned before expenses, tax and other deductions. 5
  • Stock: the actual goods or materials a business currently has on hand. 5
  • Superannuation: money set aside for retirement that must go into a complying superannuation fund. 5
  • Tax invoice: an invoice required for the supply of goods or services over a certain price. You need a valid tax invoice when claiming GST credits. 5
  • Budget Variance: is a periodic measure used by governments, corporations, or individuals to quantify the difference between budgeted and actual figures for a particular accounting category. 10
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A small business owner in her shop
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