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Offshore Bookkeeping Services | Meaning and Jargons
SMEs all over the world are aware that making financial reports, statements, and transactions can be a hefty task. This is the reason why 37% of them choose to outsourced bookkeeping services and accounting responsibilities offshore.
Once you have your offshore bookkeeping team, they are expected to report financial and accounting statements that have jargons you might not understand—and this blog will identify and explain the most common ones.
Gross Profit Margin
GPM is a kind of accounting measurement that analyses and assesses a company’s financial status & business model by presenting the amount of money left from sales efforts.
Operating Profit Margin
This is a performance measurement that is used to calculate the profit a business has generated from its operations.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is another accounting measure that determines a company’s earnings before interest expenses, taxes, depreciation, and amortisation are deducted as a substitute for the company’s present operating profitability.
The ability of a company to pay short-term debts and obligations within a year.
This shows the number of times a firm has replaced and sold inventory during a given time.
Compound Annual Growth is another bookkeeping measure that is used for determining the annual growth rate over multiple periods.
Cost of Goods Sold is defined as the cost of the products and services being sold by a company.
Accounts payable is the money the company owes to a vendor.
Assets represent the economic value a company has that can be of beneficial used in the future.
The balance sheet of a company is its financial statement that shows the assets, liabilities, shareholders’ equity, and evaluation of capital structure.
A company’s Capital is its source of funding for its overall operations and is deemed as its lifeline.
A payment made by a business to a third party.
Cashflow is the cash or cash-equivalents being distributed in and out of the company.
When wear or tear happens, there will be a reduction in an asset’s value for a period of time.
A period of time, which bookkeepers prepare financial statement and books are balanced.
Estimates the margin of security of a firm’s asset price and revenues, may drop and yet remain above the company break–even point.
It is a record/ ledger that is used to arrange, store, and summarize company transactions.
A company’s legal debts and obligations that occur during business operations.
It is the total amount a firm earns or receives from the products and services purchased by customers.
Outsource to Forward BPO
Acquire high-quality bookkeeping services by partnering with an experienced Australian BPO company; Forward BPO. We also offer different cost-effective Australian BPO outsourcing services which you can find on our services page.
You can also contact us for more information.