Small business glossary

40 terms for owners who delegate, keep books and hire, in plain English.

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Accounts payable: Accounts payable is the money a business owes to vendors and suppliers for goods or services it has received but not yet paid for.
Accounts receivable: Accounts receivable is the money customers owe a business for goods or services it has already delivered but has not yet been paid for.
Accrual vs cash basis: Accrual vs cash basis compares two accounting methods: accrual records income and expenses when earned or incurred, while cash records them when money actually moves.
AI agent: An AI agent is software that uses artificial intelligence to complete multi-step tasks with limited human input, such as booking, searching or sending messages.
AI-augmented virtual assistant: An AI-augmented virtual assistant is a human assistant who uses AI tools to speed up drafting, research and routine work while still owning the result.

Balance sheet: A balance sheet is a report of what a business owns, what it owes and what remains for the owners on a specific date.
Bank reconciliation: Bank reconciliation is the process of matching your accounting records to bank and credit card statements to find and fix differences.
Bookkeeper vs accountant: Bookkeeper vs accountant describes two roles: a bookkeeper records and organizes transactions, while an accountant analyzes the numbers, advises and often prepares tax filings.
Bookkeeping: Bookkeeping is the process of recording and categorizing a business's financial transactions so its books are accurate and up to date.

Catch-up bookkeeping: Catch-up bookkeeping is work that brings past months of unrecorded, uncategorized or unreconciled books up to date so records are accurate again.
Chart of accounts: A chart of accounts is the list of categories a business uses to record income, expenses, assets, debts and owner equity.
CRM (customer relationship management): A CRM, or customer relationship management system, is software that tracks contacts, conversations and sales follow-ups in one shared place.

Delegation: Delegation is giving another person responsibility for a task and its outcome, while you stay accountable for the result and keep checking in.
Delegation matrix: A delegation matrix is a grid that sorts tasks by skill needed and effort or value so you can decide what to hand off first.
Direct hire: Direct hire is a hiring model where a recruiter finds and screens a candidate who then becomes your permanent employee on your own payroll.
Direct hire vs staffing agency: Direct hire vs staffing agency compares two models: direct hire ends with a permanent employee on your payroll, while a staffing agency often keeps the worker on its payroll.

Effective hourly rate: Effective hourly rate is your income divided by all the hours you actually work, used to judge what your time is worth.
Executive assistant: An executive assistant is a professional who supports a senior leader or business owner by managing their calendar, communication, projects, meetings and many day-to-day decisions.

Fractional: Fractional describes buying part of a skilled person's time, such as a set number of hours each month, instead of hiring them for a full-time role.
Fractional executive assistant: A fractional executive assistant is an executive assistant who works a set number of hours each month for a client, instead of a full-time schedule.

Independent contractor (1099): An independent contractor is a worker who runs their own business and is paid on a 1099 form, not through payroll as an employee.

Matching guarantee: A matching guarantee is a promise to rematch a client with a new assistant at no extra cost if the first match does not fit.
Method Matching: Method Matching is Peachtree VA's process of pairing each client with a virtual assistant based on skill set, personality, culture and capacity, with people making the match.
Month-end close: Month-end close is the monthly process of finishing, reviewing and locking the previous month's books so reports can be trusted.

Non-disclosure agreement (NDA): A non-disclosure agreement is a signed contract that requires a person to keep a business's private information confidential and not share it with others.

Offboarding: Offboarding is the set of steps taken when a person leaves a role, including removing access, collecting company property and handing off unfinished work.
Onboarding: Onboarding is the set of steps that bring a new hire or assistant up to speed on your tools, people, expectations and processes.
Outsourced bookkeeping: Outsourced bookkeeping is the practice of paying an outside bookkeeper or firm to record, categorize and organize your business finances for you.

Profit and loss statement: A profit and loss statement is a report of a business's income and expenses over a period of time that shows whether it made a profit or a loss.
Prompt engineering: Prompt engineering is the practice of writing clear, specific instructions for an AI tool so that it returns useful and accurate results.

QuickBooks Online: QuickBooks Online is cloud accounting software, made by Intuit, that small businesses widely use to track income, expenses, invoices and reports.

Rematch: A rematch is the replacement of an assistant with a new one when the working relationship between the client and the first assistant is not a good fit.

Standard operating procedure (SOP): A standard operating procedure is a written, step-by-step guide for doing a recurring task the same way each time, no matter who does it.

Talent sourcing: Talent sourcing is the work of finding and contacting potential candidates, including people who are not actively applying for a job.

U.S.-based virtual assistant: A U.S.-based virtual assistant is a remote assistant who lives and works in the United States, so they usually share your time zone, language norms and business hours.

Virtual assistant: A virtual assistant is a remote worker who handles administrative, operational or personal tasks for a client, usually part time, from their own location instead of the client's office.
Virtual executive assistant: A virtual executive assistant is an executive assistant who works remotely, supporting a leader's calendar, communication and projects without sitting in the client's office.
Virtual personal assistant: A virtual personal assistant is a remote assistant who manages personal and household tasks for a client, such as travel, appointments, errands and family scheduling.

Zone of genius: Zone of genius is the work only you can do best, and the work that creates the most value for your business.

1099 vs W-2: 1099 vs W-2 describes the difference between paying a worker as an independent contractor on a 1099 form and paying them as an employee on payroll with a W-2.

Book a free, no-obligation strategy call. We will map out what to hand off first, and you leave with a plan whether or not you become a client.