Accounting jargon dictionary (I-O)
Posted on 8th April 2021
At Effective Accounting – we always talk in Plain English – to ensure you fully understand your accounts and tax returns. This is really important to us and follows one of our core values to be HUMAN.
f your accountant doesn’t, and the language they use often leaves you scratching your head – here is a quick guide to some of the jargon! Part 3 covers I-O – more to follow!
Intangible assets
Items your business owns that you can’t physically touch. E.g. intellectual property or trademarks.
Interim accounts
These documents show your company’s financial position as of a specific date.
Intermediaries legislation
An alternative term for IR35.
Intention of parties
This term defines the principle intentions of a contractor and/or client that goes beyond what is written within their ‘contract of services’ or ‘contract for services’.
Inventory
A list of items/stock that’s owned by your business.
Investor
A person who invests capital into your business with an expectation of a future monetary return on their investment.
Invoice
A document issued by your business to your clients listing services or goods which need to be paid for. For accounting purposes, we recommend that each invoice is assigned a unique reference number.
IR35
This is a tax law introduced by the government to combat tax avoidance by contractors or freelancers supplying their services to clients who would otherwise be deemed an employee.
Liability
The legal debts of a company, such as loans, accounts payable or mortgages.
Limited company
This is an organisation which has been set up to run a business and whose directors are responsible for running it. The limited company’s finances must be kept separate from personal finances.
Marketing
A way of advertising and/or promoting your services or products to potential consumers.
MOO
This stands for Mutuality of Obligation, which is the requirement of an employer to provide work for their employees to carry out.
National Insurance number
A National Insurance (NI) number is your unique personal identifier within the government’s social security system. It is used to ensure your NI contributions and tax payments are recorded correctly.
Net worth
The value of your company, based on the sum of its assets, minus any liabilities.
New enterprise allowance
This government scheme is designed to enable the long-term unemployed back into employment by assisting them with setting up their own business.
Be sure to check back for the more!
You can contact us and we’ll help you through the complexities of financial planning and company accounting involved in running your own business.
Written by
Nicola J Sorrell
- Effective Accounting
Founder | Xero Champion | IR35 Expert
Tagged as: Accounting Jargon
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