Overhead
Definition
The ongoing operating costs of running a business that are not directly tied to producing a specific product or service — rent, utilities, insurance, administrative salaries, and software. Overhead is allocated across products to understand true profitability. HelloBooks tracks overhead by category for accurate cost and margin reporting.
Related Terms in Core Accounting
Amortization
The gradual write-off of the cost of an intangible asset (patents, goodwill, software licences) over its useful life — the intangible-asset equivalent of depreciation. Amortization also describes spreading loan repayments into equal periodic instalments of principal and interest. HelloBooks posts amortization schedules automatically.
Accounts Payable (AP)
Money your business owes to suppliers and vendors for goods or services received but not yet paid for. Tracked as a current liability on the balance sheet. HelloBooks automates AP with purchase orders, GRN matching, and vendor bill management.
Accounts Receivable (AR)
Money owed to your business by customers who received goods or services on credit. Tracked as a current asset. HelloBooks manages AR through invoicing, payment tracking, aging reports, and automatic reminders.
Accrual Accounting
An accounting method that records revenue when earned and expenses when incurred, regardless of when cash changes hands. Required by GAAP for most businesses above a certain size. Contrasts with cash-basis accounting.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.