VAT (Value Added Tax): A consumption tax added to the value of goods and services at each stage of production or distribution.
Self-Assessment: A system used by individuals and businesses to report their income and calculate the tax due to HM Revenue and Customs (HMRC).
Corporation Tax: Tax on the profits of limited companies and other organisations.
PAYE (Pay As You Earn): A system of income tax withholding where employers deduct tax from employees' salaries or wages and pay it directly to HMRC.
Pension Contributions: Payments made by individuals or employers into a pension scheme to provide income in retirement.
Dividends: Payments made by a company to its shareholders out of its profits.
Capital Gains Tax: Tax on the profit made from the sale of assets such as property or investments.
Balance Sheet: A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
Income Statement: Also known as a profit and loss statement, it shows a company's revenues, expenses, and profits over a specific period.
Accruals: Expenses or revenues that are recognized before they are paid or received, based on when they are incurred or earned.
Depreciation: The allocation of the cost of tangible assets over their useful lives.
Bank Reconciliation: The process of comparing a company's bank statement with its accounting records to ensure they match.
Trial Balance: A list of all the general ledger accounts and their balances, used to check the accuracy of the accounting records.
Fixed Assets: Tangible or intangible assets that are expected to be used in the business for more than one accounting period.
Credit Control: The process of managing a company's accounts receivable to ensure timely payment from customers.
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Common Accounting Terms in Northern Ireland | NBAS Chartered Accountants 2024
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