What is double-entry bookkeeping?
There are many business transactions that must be recorded in separate accounts, for example: sales, purchases, debts, expenses, etc.
Each transaction is recorded in a separate account – cash account, the liabilities account. The bookkeepers use a system that records two aspect of every transaction – double-entry bookkeeping.
Every transaction is both a debit – a deduction – in one account and a credit – an addition – in another. For example, if a company buys raw materials for production, it debits its purchases account and credits the supplier’s account.
Each account records debits on the left and credits on the right. The total debits should always equal the total credits. Accountants and bookkeepers call these accounts T-accounts, because they look like a ‘T’ letter - look at the examples below.
Double-entry bookkeeping – zasada podwójnego księgowania
An account - konto
A debit – ‘winien’ – lewa strona rachunku rozliczeniowego, obciążenie
A deduction - potrącenie
A credit – ‘ma’ – prawa strona rachunku rozliczeniowego, uznanie
An addition - dodawanie
An asset – składnik aktywów
A liability – zobowiązanie
To increase – wzrastać
To decrease – zmniejszać się
Do you work in accounting and need to speak English?
I can help, contact me.
Are your relationships harmonious?
''We can improve our relationships with others by leaps and bounds if we become encouragers instead of critics.''
Maintaining good relationships is crucial not only in private life, all good businesses are based on trust and healthy relationships. How to talk about them? Find out more.
Maintain, Strengthen, Foster, Build up, Cement, Cultivate, Encourage, Establish, Improve, Promote
- they all mean more or less that we work on our relationship and build it.
The company strengthened its sales force after the merger.
We are improving relations with customers thanks to better communication.
They always try to maintain proper relations with their suppliers.
– mean that the relationship was disrupted somehow and now we want to bring it back to the previous state.
We managed to restore our relations with the customer who was dissatisfied with our delay in delivery.
Endanger, Sour, Damage, Disrupt, Jeopardise, Sever, Undermine, Strain – all mean more or less that we don’t do much or enough to keep the relationship or even do something negative to damage it.
A strike at our factory disrupted production for several weeks.
Poor after-sales service undermined relations with customers.
His lack of negotiation skills jeopardised the deal.
Cordial, Healthy, Harmonious, Good, Strong, Friendly
We have very healthy mother-daughter relationship.
Their relations were rather cordial.
Strained, Stormy, Broken, Failed, Rocky, Uneasy, Volatile
Their relations were stormy after the argument they had the other day.
Britain has rather volatile relations with EU.
Future Perfect Tense
Have you already set goals for the New Year? Are you good at keeping them? Some goals or resolutions are all the same each year, and we fail to achieve them. Here are the most common ones:
Original and Reviewed Resolutions:
I will have lost 10 kilos by the end of first quarter. --> I will have found a good gym by the end of January.
I will have started a new diet in January. -->I will have finished what I have in my fridge before I start a new diet.
I will have found a better job in 2020. --> I will have updated my CV by December.
I will have read at least 10 books in 2020. --> I will have bought at least 1 book in 2020.
I won’t have drunk any alcohol in 2020. --> I won’t have had a hangover each weekend in 2020.
Future Perfect tense – used to talk about action that will be finished before some point in the future.
Form: will have + Past Participle
Affirmative: I will have finished this report by 5 pm.
Negative: I won’t have finished this report by 5 pm.
Interrogative: Will you have finished this report by 5 pm?
And what are your goals?
Will you have started communicating in English in 2020?
Do you need help? Contact me.
HOW TO TALK ABOUT PROBLEMS AND DIFFICULTIES
Life is not a bed of roses, there are times when we need to face some difficulties. Some of them are small, some are much more important. How to talk about problems?
SNAG – a problem, especially a small one, hidden or unexpected
We hit a snag – we couldn’t pay for the shopping because there was not enough funds on the bank account.
SETBACK – a problem that delays or prevents something, makes the situation worse
The company suffered a major setback when it hadn’t been granted credit.
GLITCH – a problem that stops something working successfully
A few technical glitches made us put off the launch of our new product.
MORE IMPORTANT DIFFICULTIES:
STUMBLING BLOCK – a problem that prevents action or agreement.
Conflict within a team is often a stumbling block to positive cooperation.
PITFALL – an unexpected difficulty (often in plural – pitfalls)
There are many pitfalls while buying a house.
OBSTACLE – stops progress
A lack of qualifications can be a major obstacle to finding a job.
IMPEDIMENT – prevents free action, progress or movement
The level of red tape is a serious impediment to set up a new company in Russia.
DILEMMA – a situation which makes problems and you have to make a choice between things of equal importance
Job seekers face the dilemma of unsatisfying job against the risk of long-term unemployment.
ORDEAL – a severe experience, which is very difficult, painful or tiring
The refugees talked about the terrible ordeal they had been through due to the war.
Are you having difficulties with your English? I can help. Contact me.
What is Master Budget?
it is a strategy that documents expected future sales, productions levels, purchases, future expenses incurred, capital investments, etc.
Find out how to calculate Master Budget
Read the text:
How to prepare a master budget? Start with your sales.
Match the words in bold with their definitions below:
check your answers below.
master budget - budżet łączny
expected sales - przewidywana sprzedaż
purchases - zakupy
expenses incurred - poniesione wydatki/nakłady pieniężne
to estimate - oszacować
direct labor - koszty bezpośrednie robocizny
overheads - koszty ogólne, pośrednie
cash flows - przepływy pieniężne
financial statements - sprawozdania finansowe np.: bilans, RZiS
1. financial statements, 2. generate, 3. quantity, 4. cash flows, 5. inflows, 6. estimate
Are you an accountant? Do you need to speak English at work? Are you preparing budgets or financial reports? Contact me to schedule your free trial lesson.
Collocations for Key Business Words
What is a collocation?
It’s a pair of group of words that often go together. They can be made of a verb + noun (set up a business), adjective + noun (direct costs), noun + noun (market leader). You should learn how words combine to sound natural and be more fluent in English.
Collocations for key business words – Verb + …
Verb + a COMPANY
Set up / establish / start a company
The company was established in 1997.
Buy / take over / acquire a company
We are planning to take over our main competitor.
Leave / resign from a company
She resigned from a company because she found a better job.
Manage / run a company
We have been running our company since 2001.
Verb + a CONTRACT / an AGREEMENT
Change / alter / amend a contract
We will have to amend the contract as our situation has changed.
Break / breach a contract
They breach the contract and didn’t supply the goods on time.
Negotiate a contract
The company needs to renegotiate the contract with its suppliers.
Draw up / prepare a contract
I won’t be able to draw up the contract by the weekend.
Enter into / conclude / make a contract
We concluded the agreement on 21st May.
Renew / prolong a contract
They wish to renew the contract.
Terminate a contract
Because our supplier doesn’t meet the provisions of the contract, we need to terminate it.
Verb + COSTS
Bring down / cut / reduce costs
The costs are too high and we need to cut them.
Who will cover the costs of transportation?
The company incurred costs associated with retraining its stuff.
Pay / meet costs
We will have to pay the costs of new software implementation.
Verb + a CUSTOMER / a CLIENT
Attract a customer
What can we do to attract new customers?
Deal with a customer
My main responsibility is to deal with customers and meet their needs.
Look after / take care of a customer
In our company we really look after our customers.
Lose a customer
We can’t afford to lose this client.
Do you want to learn more collocations? Schedule your lesson with me, contact me.
Change is inevitable (can't be avoided). People fear change as it usually comes unexpected and it is not easy to prepare for it. Resistance (being unwilling to do something) is something natural. Good managers are capable of overcoming resistance to change (fighting unwillingness) by preparing their staff for it.
Verb + change
to accept change - to stop resist
A lot of people find it difficult to accept change.
to bring about a change - to introduce
The government's advertising campaign is an attempt to bring about a change in the way we think about the environment.
to resist change - to be afraid and be reluctant to
It is natural that people resist change, as they don't want to leave their comfort zone.
to undergo change - to go through
Our company has undergone major changes over last few years.
Adjective + change
last minute change - very recent
I'm sorry for the last minute change in the agenda.
minor change - small
The problems of health service won't be solved by making minor changes.
noticeable change - significant
The has been a noticeable change in his attitude to work.
sweeping change - radical
The taxation system requires a sweeping change to help the poorest.
welcome change - wanted
Let's eat out, it will be a welcome change from cooking.
Read more about how to OVERCOME RESISTANCE TO CHANGE WITH TWO CONVERSATIONS from Harvard Business Review.
Are you resistant to change or do you welcome change?
DEPRECIATION VS. AMORTIZATION
When do accountants use the term ‘depreciation’ or ‘amortization'?
When they talk about different types of fixed assets (fixed – assets which are not likely to be converted quickly into cash).
Depreciation – it is a reduction in the value of a tangible asset (e.g. land, machinery, vehicles, equipment, inventory) over time due to wear and tear.
Amortization – it is a reduction in the value of an intangible asset (the one that is not physical in nature e.g. Goodwill, brand recognition, intellectual property) over time.
METHODS OF DEPRECIATION
The popular methods of depreciation include:
Straight-line – depreciation is in equal amounts over the estimated life of the asset.
Double Declining Balance - is an accelerated method, which counts as an expense twice as much of the asset's book value each year compared to straight-line depreciation.
Unit-of-production - is usesuful when an asset's value is related to the number of units it produces and not necessariliy the number of year it is in use.
Let’s compute depreciation using the Straight-line method:
Cost – how much the company paid for the asset
Salvage Value (residual or scrap value) – the estimated book value of an asset after depreciation is complete
Estimated life of asset / Useful life – the estimated number of years the asset is likely to remain in service
Annual depreciation – yearly depreciation
e.g. The company purchased a car for PLN 40.000 – cost of asset, estimated life – 5 years, estimated salvage value – PLN 8.000
Cost – Salvage Value/Estimated life = Annual Depreciation
PLN 40.000 – PLN 8.000/5 years = PLN 6.000
Therefore the annual depreciation of this tangible asset (a car) will amount
Below you will find the glossary of terms (EN-PL) and a video explaining the above mentioned methods of depreciation:
Glossary – EN – PL:
Depreciation - amortyzacja środków trwałych materialnych
Amortization - amortyzacja środków trwałych niematerialnych i prawnych
Assets - majątek, środki
Fixed asset - środek trwały
Tangible asset - środek trwały materialny
Intangible asset - środek trwały niematerialny
Reduction in value - spadek wartości
Goodwill - wartość firmy
Straight-line depreciation - metoda liniowa amortyzacji
Declining-balance depreciation - metoda degresywna amortyzacji
Units-of-production depreciation - metoda amortyzacji przypadająca na jednostkę wyprodukowaną
To compute - obliczyć
To purchase - zakupić
Salvage / scrap / residual value - wartość umorzeniowa, cena po amortyzacji
Estimated life of an asset / Useful life - czas użyteczności środka
Annual depreciation - amortyzacja roczna
- teacher of English
- interpreter PL-EN, EN-PL
- B.A in English Linguistics, M.A in Linguistics, Sworn and Business Translations
- over 17 years experience teaching and designing materials
- experience teaching online to individuals and small groups
- experience teaching in-company
- 3000+ hours of online lessons