Glossary

SLA
Scottish Law Accountant. Member of The Society of Law Accountants in Scotland. Having successfully passed 7 exams over a 2-year period, one can apply for membership and must carry out annual CPD (continuing professional development) to continue with membership.

HMRC
HM Revenue & Customs

LSS
The Law Society of Scotland

Trial Balance (TB)
Accounting term for the report used to ‘balance’ the books in a double-entry accounting system. Used in connection with the term ‘client trial balance’ (CTB), this refers to the report used to ‘balance’ the client ledgers with the client bank, showing a ‘surplus’ due to the business as at the report date.

Surplus
The total sum of firm funds held in a client bank account which is the sum at credit of the bank account, less the total sum of client credit balances to be accounted for.

Profit and Loss (P+L)
Financial report showing the net effect of income less expenses based on entries posted in the current financial year. Income exceeding expenses will create a profit. Expenses exceeding income will result in a loss.

Balance Sheet (BS)
Report showing a firm’s assets, liabilities and equity. (Net worth)

General Ledger (GL)
A formal list of all postings made to a specific firm account. The balances of such form a trial balance.

Accounts Payable (A/P)
A control account used to show the sum of money owed by the firm to suppliers for purchase invoices received but not paid.

Accounts Receiveable (A/R)
A control account used to show the sum of money owed by customers to the firm for sales invoices issued but not paid.

Financial Reports
A pre-determined list of accounting reports prepared for business owners/managers to assist them with making financial decisions for the future of the business.