Introducing the Periodic Table of Accountancy - infographic
Updated: Oct 22, 2020
Accountancy. Traditionally seen a dull profession but the role of the Accountant is much more than just someone who processes invoices and payroll. Accounts are crucial to a business, and it is in light of this that it is in everyone’s best interest to become familiar with Accountancy terminology.
If you are a sole trader you need to submit your end-of-year accounts, they determine how much tax you pay, what your profit margin is, whether you need to increase your day rate or need to onboard more clients to make ends meet. If you are responsible for the Accounts for a Ltd company or LLP then an understanding the role of a cashflow forecast is crucial to business planning, and if you are starting on your Accounting career, then getting to grips with the terminology is an excellent place to start.
The world of Accountancy and Finance isn’t one the conjures up many visualisations, so this is where The Digital Accountant’s creative team come in! The last time we encountered a Periodic Table was in Chemistry at school, so we thought we would give it a go for Accountancy. Before we dive in, we should acknowledge the creator of the original Periodic Table, Dmitri Mendeleev, who first published the Periodic Table of Elements in 1871.
We hope you find this nifty Periodic Table of Accountancy handy. We know there are many infographics out there for download, so we hope this piece of content stands out from all the rest. If you think we should add some elements then let us know and then over time, The Digital Accountant’s Periodic Table of Accountancy will evolve into future iterations, just like Mendeleev’s original masterpiece.
How to use the Periodic Table of Content
If you would like a copy of our Periodic Table of Accountancy, pop your details into the form here, and we’ll email a copy straight to your inbox. We have focussed on four primary areas; it should all be self-explanatory. See below for an explanation of the different sections.
The fundamentals of evaluating the financial position of an organisation. A Balance Sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders/business owners. A full Balance Sheet helps you map out a clear strategy for the growth of your organisation and for you to achieve your long-term business goals.
This section covers the basics of Accountancy. If you are a small business owner getting to grips with all the terminology can appear daunting. However, if you take a little time to familiarise yourself with the basics, you may surprise yourself and realise that it’s not as complicated as you first thought!? This section of The Periodic Table of Accountancy will provide an invaluable resource helping you get to grips of some essential accounting basics that every small business owner and person starting their career in Accountancy should know.
These are the rules and guidelines followed by different entities to record, prepare and present financial statements relating to a company. They are what you would call the building blocks for Generally Accepted Accounting Principles (GAAP). In the UK, we use Financial Reporting Standards (FRS), and in the US, the Financial Accounting Standards Board (FASB) sets the accounting standards. Both are there to ensure UK & US GAAP are followed to the letter.
Profit & Loss
Closely linked to the Balance Sheet section of our periodic table. P&L provides business owners of all shapes and sizes an overview of revenue generation and expenses associated with the running of a business. A P&L statement forms the basis of a cash flow forecast, budgeting and the formation of a company business growth strategy. It feeds into all aspects of the health of a company, whether you are a sole trader, small business owner or you are responsible for managing the books for a global corporation, a P&L statement provides a holistic overview into the financial health of an organisation.
What other Accounting elements are there?
We haven’t included everything! Are there any elements that you think we absolutely must add? If so, please let us know.
Some elements could live in multiple categories. Do you agree with our categorisation?
This is a living and breathing document, so let us know your thoughts and watch this space for further iterations!
Download your copy today!
To get your hands on your very own copy pop your details in the form here and we’ll email a copy straight to your inbox.