Toran Accounting Glossary

Accounting & Tax Terms Explained for Growing Businesses

Browse key accounting, tax, bookkeeping, and advisory terms explained in plain English.

Accounting
Tax
Advisory
Bookkeeping
Small Business Accounting
Startup Accounting
Tax Preparation
Tax Planning
Small Business Tax
Categories:
Real Estate Accounting
1031 Exchange, a tax-deferral strategy for real estate investors. Discover how it allows property owners to defer capital gains taxes by reinvesting in like-kind properties.
Accounting & Bookkeeping
Understand the importance of Accounts Payable (AP) in managing cash flow, vendor relationships, and accurate financial reporting for your business.
Accounting & Bookkeeping
Accounts Receivable (AR) plays a vital role in managing cash flow, reducing credit risk, and ensuring accurate financial reporting. Discover best practices for AR management.
Learn about ARR (Annual Recurring Revenue), a crucial metric for subscription-based businesses. Discover how ARR tracks predictable revenue and helps measure business growth and stability.
Real Estate Accounting
Bonus Depreciation, a tax incentive that allows businesses to accelerate asset depreciation. Discover how it provides immediate tax relief and boosts cash flow.
Startup & CFO
Burn Rate, a key financial metric for startups. Learn how it tracks the rate at which a company spends its capital and how it impacts cash flow management and sustainability.
Real Estate Accounting
What Cap Rate (Capitalization Rate) is and how it helps evaluate the profitability of real estate investments. Understand its role in determining property value.
Construction Accounting
Certified payroll reports verify prevailing wage compliance on federally funded projects. Understand reporting requirements, worker data, and contractor obligations.
Accounting & Bookkeeping
Chart of Accounts (COA) organizes financial data, aids in financial reporting, budgeting, and ensures compliance with accounting standards.
Construction Accounting
Completed Contract Method (CCM) defers revenue until project completion. Understand its impact on cash flow, taxes, and financial reporting.
Real Estate Accounting
Cost Segregation, a tax strategy for real estate owners. Learn how it helps accelerate depreciation and provide significant tax savings by reclassifying property components.
Real Estate Accounting
Depreciation recapture, the process of reclaiming tax benefits from asset depreciation. Learn how it impacts capital gains and your overall tax liability.
Tax Planning & Advisory
Discover Fringe Benefits, additional perks offered to employees beyond salary. Learn about health insurance, retirement plans, paid time off, and other benefits that enhance compensation packages.
Tax Planning & Advisory
Income Shifting, a tax strategy that helps families reduce their overall tax burden by redistributing income to lower-taxed family members. Discover how it works and its benefits.
Construction Accounting
Job Costing is a critical accounting method used by businesses, especially in industries like construction, manufacturing, and other service-based sectors. It involves tracking and allocating all costs associated with a specific job or project to understand the financial health and profitability of each individual task or project
Construction Accounting
Overhead allocation distributes indirect costs across products or services. Understand methods, examples, and its role in accurate cost and profit analysis.
Real Estate Accounting
Passive Activity Loss (PAL), a tax rule limiting the ability to deduct losses from passive activities. Discover how it affects real estate investments and other business activities.
Construction Accounting
Percentage of Completion Method (PCM) helps businesses recognize revenue based on project progress. Understand its role in revenue recognition, cash flow, and financial accuracy.
Construction Accounting
Prevailing wage sets minimum pay rates for public construction projects. Understand wage rules, contractor obligations, and compliance requirements.
Understand the Qualified Business Income (QBI) Deduction, which allows business owners to deduct up to 20% of their income. Learn how it can lower your tax liability and improve cash flow.
Real Estate Accounting
Qualified Opportunity Zones (QOZ) help investors defer and reduce capital gains taxes. Understand rules, benefits, and long-term investment advantages.
Real Estate Professional Status (REPS) and how it allows taxpayers to offset passive losses against active income. Learn the eligibility criteria and its tax advantages for real estate investors.
Construction Accounting
Understand what Retainage is in construction contracts, how it affects project payments, and its role in ensuring project completion and quality control.
Startup & CFO
Learn about Runway, a key metric for startups. Discover how it helps measure the time a company can operate before running out of cash and what it means for business sustainability.
Tax Planning & Advisory
S-Corp Election and how it allows small businesses to avoid double taxation. Discover its benefits, eligibility requirements, and how it impacts your taxes.
Real Estate Accounting
How the STR Loophole works and how short-term rental owners may offset losses against active income. Understand key rules, eligibility, and tax advantages.
Construction Accounting
Learn about Work in Progress (WIP), its role in accounting, and how it affects a company’s financial statements. Understand the WIP process and its impact on project management.

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