Because Aplos is committed to educating and instilling confidence in its users, I want to take the opportunity to explain some basics. Hopefully, understanding the terminology will shed light on some areas within fund accounting and send you on your way to tackling the tasks (with assurance) within your organization. Below are words you might come across when using Aplos. Don’t let the words intimidate you! I had to look them up myself.
Fiscal Year :: A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in December; it may run over any period of 12 months. The fiscal year is referred to by the date in which it ends. For example, if a company’s fiscal year ends October 31, 2010, then everything between November 1, 2009 and October 31, 2010 would be referred to as FY 2010. Not using the actual calendar year gives many companies an advantage, allowing them to close their books at a time which is most convenient for them. Within Aplos, the fiscal year is entered on the System Preferences Screen.
Account :: Formal record that represents, in words, money or other unit of measurement, certain resources, claims to such resources, transactions or other events that result in changes to those resources and claims.
Asset :: An economic resource that is expected to be of benefit in the future. Probable future economic benefits obtained as a result of past transactions or events. Anything of value to which the firm has a legal claim. Any owned tangible or intangible object having economic value useful to the owner.
Liabilities :: DEBTS or OBLIGATIONS owed by one entity (DEBTOR) to another entity (CREDITOR) payable in money, goods, or services.
Fund Balances :: The amount of money designated for a specific fund minus the expenses related to that fund.
Income :: Inflow of REVENUE during a period of time.
Expense :: Something spent on a specific item or for a particular purpose.
Account Payable :: Amount owed to a CREDITOR for delivered goods or completed services.
Account Receivable :: Claim against a DEBTOR for an uncollected amount, generally from a completed transaction of sales or services rendered.
Batch :: Used to cluster together JOURNAL entries, such as a set of checks, for example, under a specified group name or date. It may also be viewed as a collection of things or persons to be handled or processed together.
These are some of the more common definitions in which to become familiar. For a more extensive list, you may link to a website here: http://www.nysscpa.org/glossary.
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