Glossary
A reference guide to accounting terms and Bamboo-specific concepts.
Account
Section titled “Account”A record in the Chart of Accounts that tracks a specific type of asset, liability, equity, revenue, or expense.
Accounting Equation
Section titled “Accounting Equation”The fundamental equation: Assets = Liabilities + Equity. Every transaction must maintain this balance.
Accounts Payable (A/P)
Section titled “Accounts Payable (A/P)”Money your organization owes to suppliers for goods or services received but not yet paid for.
Accounts Receivable (A/R)
Section titled “Accounts Receivable (A/R)”Money owed to your organization by customers for goods or services delivered but not yet paid for.
Accrual Accounting
Section titled “Accrual Accounting”Recording transactions when they occur, regardless of when cash changes hands. Contrast with cash accounting.
Something of value owned by the organization. Examples: cash, equipment, inventory, receivables.
Audit Trail
Section titled “Audit Trail”A complete record of all changes and transactions, showing who did what and when. Bamboo’s event sourcing provides this automatically.
Balance Sheet
Section titled “Balance Sheet”A financial statement showing assets, liabilities, and equity at a specific point in time.
Book Value
Section titled “Book Value”The value of an asset as recorded in the accounting records (cost minus accumulated depreciation).
Chart of Accounts (COA)
Section titled “Chart of Accounts (COA)”The complete list of all accounts used to record transactions in an organization.
Closing Entry
Section titled “Closing Entry”A journal entry made at the end of a fiscal period to transfer income/expense balances to retained earnings.
Contra Account
Section titled “Contra Account”An account that offsets another account. Example: Accumulated Depreciation offsets Fixed Assets.
Credit
Section titled “Credit”An entry that increases liabilities, equity, or revenue, and decreases assets or expenses. Recorded on the right side.
Current Assets
Section titled “Current Assets”Assets expected to be converted to cash within one year.
Current Liabilities
Section titled “Current Liabilities”Obligations expected to be paid within one year.
An entry that increases assets or expenses, and decreases liabilities, equity, or revenue. Recorded on the left side.
Depreciation
Section titled “Depreciation”The systematic allocation of an asset’s cost over its useful life.
Double-Entry Bookkeeping
Section titled “Double-Entry Bookkeeping”Every transaction is recorded with at least two entries—a debit and a credit—that must be equal.
Equity
Section titled “Equity”The owner’s claim on assets after all liabilities are paid. Calculated as Assets minus Liabilities.
Event Sourcing
Section titled “Event Sourcing”Bamboo’s data storage method where all changes are recorded as immutable events, creating a complete history.
Expense
Section titled “Expense”Costs incurred in generating revenue. Examples: salaries, rent, utilities.
Fiscal Period
Section titled “Fiscal Period”A specific accounting period (usually a month) within a fiscal year.
Fiscal Year
Section titled “Fiscal Year”A 12-month period used for accounting purposes. May or may not align with the calendar year.
Fixed Assets
Section titled “Fixed Assets”Long-term assets used in operations. Examples: buildings, equipment, vehicles.
Generally Accepted Accounting Principles—standard accounting rules in many countries.
General Ledger (GL)
Section titled “General Ledger (GL)”The complete record of all financial transactions, organized by account.
GL Code
Section titled “GL Code”A unique numeric identifier for each account (e.g., 1000 for Cash).
Gross Profit
Section titled “Gross Profit”Revenue minus Cost of Goods Sold, before operating expenses.
International Financial Reporting Standards—accounting rules used in many countries worldwide.
Income Statement
Section titled “Income Statement”Another name for the Profit & Loss Statement.
Journal Entry
Section titled “Journal Entry”A record of a financial transaction, including date, accounts affected, amounts, and description.
Liability
Section titled “Liability”An obligation to pay money or provide services. Examples: loans, accounts payable, accrued expenses.
Liquidity
Section titled “Liquidity”How quickly an asset can be converted to cash.
Net Income
Section titled “Net Income”Revenue minus all expenses. Also called net profit or bottom line.
Normal Balance
Section titled “Normal Balance”The type of balance (debit or credit) that typically appears in an account type.
Organization
Section titled “Organization”In Bamboo, a business entity with its own Chart of Accounts, transactions, and team members.
Period Close
Section titled “Period Close”The process of finalizing a fiscal period, preventing further changes to that period.
Posting
Section titled “Posting”Recording a journal entry to update account balances.
Profit & Loss (P&L)
Section titled “Profit & Loss (P&L)”A financial statement showing revenue, expenses, and net income for a period.
Retained Earnings
Section titled “Retained Earnings”Accumulated profits that have not been distributed to owners.
Revenue
Section titled “Revenue”Income earned from normal business operations.
Reversal
Section titled “Reversal”A journal entry that negates a previous entry, used for corrections.
RLS (Row Level Security)
Section titled “RLS (Row Level Security)”Bamboo’s security mechanism ensuring each organization’s data is isolated.
Trial Balance
Section titled “Trial Balance”A report listing all accounts and their balances, verifying that debits equal credits.
Working Capital
Section titled “Working Capital”Current Assets minus Current Liabilities. Measures short-term financial health.