08/09/2026
Today is International Literacy Day, so we thought we'd tackle a type of literacy that can sometimes feel like a language of its own…
💬 Financial jargon!
Running a business sometimes feels like you need to speak a completely different language when it comes to your finances. 🤯
So, let's translate some of the jargon into plain English…
📈 Gross Profit
What you’ve made from selling your products or services, minus the direct costs of providing them.
💰 Net Profit
What’s left after you’ve paid all your business expenses. This is the number that really tells you whether your business is making money.
💸 Cash Flow
Money coming in and money going out. And remember… profit doesn't pay the bills if the cash isn't in the bank! 👀
🙋♀️ Debtors
People who owe you money.
📬 Creditors
People you owe money to.
📅 Accruals
Costs your business has incurred, but you haven't received the invoice or paid them yet.
⏰ Prepayments
When you've paid for something upfront, but the cost relates to a future period.
📊 Management Accounts
Regular reports that show you how your business is performing — so you can make decisions based on what’s happening now, rather than waiting until your year end.
❤️ Understanding your numbers
Because your accounts aren't just there for HMRC. They're there to help you run your business.
Financial literacy doesn't mean knowing every piece of accounting jargon. It means understanding what your numbers are telling you.
Still speaking a different financial language? Don't worry — that's what we're here for! 😉
