Accounts Payable

Money which you owe to suppliers for products and services purchased on credit.


Things you own, e.g. buildings, stock, vehicles.

Beneficiary Current Account

A detailed account showing the amount that has been distributed to a beneficiary from a Trust and the amount that has been withdrawn by the beneficiary, like a bank account. The balance shows the amount available to the beneficiary to withdraw at the end of a period. When the balance is in brackets, it is overdrawn and the beneficiary has withdrawn too much.


People who you owe money to, e.g. suppliers, banks.

Current Liabilities

Obligations reasonably expected to be paid within the next year, e.g. creditors, PAYE.

Directors’ Annual Report

A company report which presents financial information such as business activity, donations, employee remunerations, audit expenditure, etc.


Earnings Before Interest and Tax - a measure of your firm’s profit excluding interest and income tax expenses.

Imputation Credits

An imputation credit (attached to dividends when they are paid out of a company) allows a company to pass on the benefit of the NZ Income Tax it has paid already to the shareholders of the company. A shareholder can claim the credits they have received to offset the tax they are liable to pay on that dividend income.

Net Loss

The amount by which expenses exceed income.

Non-Current Assets

Assets that are not expected to be consumed or sold within one year, e.g. investments, goodwill.

Notes to the Financial Statements

Notes that clarify information presented in the financial statements, as well as expand on information where additional detail is needed.

Share Capital

The total amount paid in by shareholders for shares in the company.

Statement of Financial Performance / Profit and Loss Statement

A statement that reports on the income and expenses of an entity for a period, and the resulting net profit / loss.

Work in Progress (WIP)

The value of work which is currently being worked on, but not yet completed or invoiced.

Accounts Receivable

Money that is owed to you by a customer for products or services you have provided to them on credit.

Balance Date

The last day of your financial year.

Cost of Goods Sold

These are the direct costs involved in getting goods / services ready to be sold, e.g. in a supermarket these would be the purchases of groceries to be sold.

Current Assets

Cash and other assets that are reasonably expected to be converted to cash or used in the business within one year, e.g. stock on hand, cash in bank.


An expense that spreads the value of an asset over its expected useful life.


Distributions of cash or other assets from a company to its shareholders.

Gross Profit

The difference between income and cost of goods / services sold.


Things you owe, e.g. bank loans, creditors.

Net Profit

The amount by which income exceeds expenses.

Non-Current Liabilities

Liabilities that are not expected to be paid within one year, e.g. bank loans, hire purchases.

Retained Earnings

Notes that clarify information presented in the financial statements, as well as expand on information where additional detail is needed.

Shareholder’s Equity

This is the amount that would be returned to shareholders if all assets were liquidated and all its debts repaid.

Shareholder Current Account

A detailed account that shows the amount that has been distributed to a shareholder from the company, or funds that have been put into the company personally by a shareholder, and the amount withdrawn by the shareholder. The balance shows the amount available to the shareholder to withdraw at the end of a period. When the balance is in brackets this means it is overdrawn and the shareholder withdrawn too much.

Statement of Financial Position / Balance Sheet

A statement that reports on the assets, liabilities and owners ’ equity of an entity at a specific date.

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