If you are like most business owners, you like to keep a constant eye on company finances, and you should have some fundamental knowledge and understanding of accounting and finance to make sure things run smoothly.
Though it’s most important for you to be an expert on your core business product or service, you shouldn’t ignore the importance of basic accounting, as it’s difficult to take your company to the next level without an accurate view of its financial situation.
The following glossary defines key accounting terms and introduces basic accounting concepts:
Billing, or billables, is the money invoiced to clients and may be reflected through orders. This may cover a period from one month to twelve months. In the simplest terms, this is the amount owed by customers and clients against products or services offered through your business.
Revenue is defined as the amount generated from selling products or services.
COGS stands for Cost of Goods Sold (or “cost of sales”). It is the amount required to create a product or provide a service, including all supplies and materials used in production or distribution.
Expenses describe the outlay of capital and the cost sustained by an organization in its pursuit of profit. Account expenditures are the money spent on basic company operations, all of which add up to the things you do to maintain and increase revenue.
Income (net) is determined by starting with revenues and then deducting COGS and operating expenditures like depreciation, interest, taxes, and other miscellaneous charges. The ability to control expenses and allocate resources properly is reflected in net income.
Vendors, or suppliers, are the ones who sell products or services to others in the economic production chain.
Assets are valuables a business owns, such as cash on hand, receivables, inventory, machinery, and buildings.
Accounts Receivable is the amount receivable from the customer for the purchase they made on credit.
Liabilities are anything considered a debt or financial obligation to a company, such as accounts payable, income taxes, wages, loans, and other accounts owed.
Accounts Payables are the amounts payable to vendors for purchases made on credit. All the vendors the company still requires to pay against their products or services are listed here.
Equity, often known as owner’s equity, is the value of a company’s assets less its liabilities. Common stock retained profits, and extra paid-in capital is all examples of what we call “shareholder’s equity.”
Financial Dashboards This management tool lets you monitor key financial indicators, manage cash flow efficiently, and keep tabs on revenue, costs, and other metrics to ensure that your organization meets and exceeds its financial goals.
Double Entry Bookkeeping In double-entry accounting, each company transaction is recorded in at least two accounts, one as a debit and the other as a credit. Debits and credits in a double-entry system must balance out to one another.
Why Financial reporting is Important?
Understanding financial reports is a necessary evil, even if it isn’t what gets you out of bed in the morning. You need to keep up with your company’s financial records daily, weekly, monthly, quarterly, and yearly. However, even if you have a CPA as the resource to assist with tasks like bookkeeping, cash management, tax filing, and financial analysis, it is your job to make those tough financial decisions.
The AtmosAI Financial Module streamlines and automates financial business processes for daily business intelligence across its enterprise applications. The AtmosAI Financial Module boosts efficiency, cuts down on expenses, and delivers insightful data that aids in making more informed company decisions. The AtmosAI Financial Module provides a basis for developing advanced knowledge in the following areas:
ATMOS-AI Financial Module Features:
Billing & Payables: Sync every aspect of the ATMOS-AI system with the Financial Module
Financial Dashboard: Spend more time focusing on revenue-generating opportunities
Pay Agents & Vendors: Manage commissions, track COGS, and make payments to vendors
BI Data Reporting: Utilize business intelligence to analyze data and turn it into action
Order Processing & Tracking: Trace orders and invoices from submittal to funds in your account
Third-Party Integrations: Use our APIs to link to necessary vendors, like accounting software
Subscription Management: Manage recurring orders, including the status, origin, and new charges
Manage Processors: Integrate your existing account or save money with AtmosAI Payments
There are several benefits to having well-organized business finances. Keeping detailed financial records is essential for any business looking to attract investors, prevent losses due to theft, and expand to the next level.
Better management of corporate finances and making educated financial decisions are both facilitated by the AtmosAI Financial Module. We provide the figures you need to understand your business’s financial viability and health to make more informed business decisions.
To help you accomplish these goals, AtmosAI has developed a Financial Module that is both user-friendly and straightforward. We assist you in simplifying the process of operating your company in several ways.
Your transformation relies on technology that provides a number of consumption models, and AtmosAI lets you pick precisely what you need for your organization.
If you’re interested in exploring the financial module capabilities of AtmosAI’s Financial Module, you can get started here. We offer a personalized demo for those who are interested.
For further questions or clarifications, we can be reached at hi@atmosai.io.