Business terminology: Don’t let big words intimidate you
One of the most stressful parts of jumping into a new job or work place is the introduction of new terminology. In this section, I’ve listed a few of the most common business terms you will encounter and an explanation of what they mean.
Accounting- this is the department of a company that accounts for where the money in a company is going and making sure that everyone is paying/receiving the correct amounts. If you think you were underpaid, you should go to this department to get it fixed.
Audit- official document that contains information about the company’s money such as how much they have earned, spent, lost, or gained. These are often referred to in tax season because companies can be legally charged for incorrectly filing their audits.
Department - refers to a group of people or section of an organization that is in charge of one specific section of work.
Ex: Accounting Department, Sales Department, Finance Department, HR Department
Equity- The amount of money someone has put into a product or business. This usually refers to Shareholders (people who bought stock or invested in the company) in which it means the amount of money they would get back if the company sold everything and shut down.
Positive Equity- this means that something is worth more than you initially invested in it
Negative Equity- this means that something costs more than you have put into it A. K. A. you owe $
Finance- just a fancy way of saying money.
Ex: Finance Department is the department that talks money with customers.
Ex: A financial report is a report that discusses where money goes within a company
Human Resources (HR)- A. K. A. the principal’s office; the department of a company that handles hiring/firing/holding employees accountable for their behavior. This is where you go when someone has done you dirty. This is where you do not want to be sent.
Inventory- the number of products a company has that they could sell in that exact moment
