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Accounting Need to Know
Accounting Need to Know
Updated over 6 months ago

The Accounting feature in MyCase is a robust tool allowing your firm to streamline all of your accounting needs. To best accomplish this though, there are some terms you'll need to know. Reference this article for the definitions of terms you may come across in MyCase Accounting.

Key Term

Definition

Accounting Rule

A rule that describes how the financial information of your business must be recorded

Asset

Any resource owned or controlled by your firm

Balance Sheet

A statement of the assets, liabilities, and capital of your firm at a particular point in time, detailing the balance of income and expenditure over the preceding period

Cash Flow Statement

Financial statement that reports on your firm's sources and usage of cash over some time

Chart of Accounts

Index of all the financial accounts in your firm's general ledger, provides a digestible breakdown of all the financial transactions that your firm conducted during a specific accounting period broken down into subcategories

Cleared Transaction

Cash balances in an account that are able to be immediately withdrawn or used in financial transactions

Current Asset

Cash and other assets that are expected to be converted to cash within a year

Current Liability

Amount due to be paid to creditor(s) within a year

Depreciation

A reduction in the value of an asset with the passage of time, due in particular to wear and tear

Direct Cost

A price that can be directly tied to the production of specific goods or services your firm provides

Equity

The value of the shares issued by your business

Firm Expense

The cost of operations that your business incurs to generate revenue

Fixed Asset

Assets which your firm purchases for long-term use and are not likely to be quickly converted into cash

General Ledger

The main accounting record of your firm

Income Summary

A temporary account into which all income statement revenue and expense accounts are transferred at the end of an accounting period

Journal Entry

Act of keeping or making records of any economic transactions

Liability

An amount your firm owes to creditors or vendors

Non-current Asset

Your firm's long-term investments for which the full value will not be realized within the accounting year

Non-current Liability

Obligations listed on the balance sheet that are not due for more than a year

Other Income

Net income realized from one-time non-business activities

Overhead

An ongoing expense of operating your firm

Revenue

The total amount of income generated by your firm's sale of services

Trust Liability

Any and all costs, expenses, or liabilities of your firm's trust account

Uncleared Transaction

A balance in an account that is not able to be immediately withdrawn or used in financial transactions

Vendor

A person or business that supplies goods or services to your firm

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