Balance Sheet
Definition
A financial statement showing what your business owns (assets), owes (liabilities), and the owner's stake (equity) at a specific point in time. Assets = Liabilities + Equity. HelloBooks generates balance sheets automatically from your transactions.
Related Terms in Core Accounting
Bank Reconciliation
The process of matching your accounting records to your bank statement to ensure they agree. HelloBooks AI auto-categorizes and matches transactions from 11,000+ banks via Plaid, reducing reconciliation from hours to minutes.
Cash Flow Statement
A financial report showing how cash moves in and out of your business through operations, investing, and financing activities. Essential for understanding whether your business generates enough cash to cover expenses.
Chart of Accounts (COA)
An organized list of every account used to record financial transactions in your general ledger. Categories include assets, liabilities, equity, revenue, and expenses. HelloBooks creates a standard COA automatically when you set up your entity.
Cost of Goods Sold (COGS)
The direct costs of producing goods or services sold by your business — materials, labor, and overhead. Deducted from revenue to calculate gross profit. HelloBooks tracks COGS through inventory and purchase management.
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