PLAIN-ENGLISH GLOSSARY
Finance terms without the fog.
Short explanations of the words used across the KalkuleX guides. You do not need an accounting qualification to understand the work.
- System of record
- The main place where the official accounting information is kept. For KalkuleX work, Xero remains the accounting system of record.
- Reconciliation
- A check that two sets of figures agree, such as comparing an Excel total with the matching Xero report for the same company and date.
- Chart of Accounts
- The list of categories a business uses to organise income, expenses, assets, liabilities and equity in its accounts.
- Consolidation
- Combining the financial results of related companies into one group view.
- Intercompany
- A transaction or balance between two companies in the same group, such as a management fee or loan.
- Elimination
- An entry used only in a combined group report to remove internal transactions or balances that would otherwise be counted twice.
- Exception
- An item that does not follow the expected rule and needs a person to review it.
- Suspense or uncategorised account
- A temporary holding place for a transaction that has not yet been assigned to the correct account.
- Audit trail
- A history showing what happened, who did it, when it happened and what the result was.
- Working paper
- A document or spreadsheet that shows how a financial figure, adjustment or conclusion was prepared and checked.
- KX Credits
- The KalkuleX payment unit applied to approved work. The expected requirement is shown before material paid processing begins.