> For the complete documentation index, see [llms.txt](https://docs.kick.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kick.co/reference/glossary.md). # Glossary **Accrual accounting**\ A method of accounting where income and expenses are recorded when they're earned or incurred, not when cash actually changes hands. The alternative is cash basis accounting. [**Balance Sheet**](/reports/balance-sheet.md)\ A financial report showing what your business owns (assets), what it owes (liabilities), and what's left over (equity) at a specific point in time. **Cash basis accounting**\ A method of accounting where income and expenses are recorded when cash is actually received or paid. Simpler than accrual, and common for small businesses. [**Categorization**](/common-workflows/categorization.md)\ The process of labeling a transaction with a category - like *Meals & Entertainment* or *Software* - so it appears in the right place on your reports. **Chart of Accounts (CoA)**\ A structured list of all the accounts used to record transactions in your books. Your accountant manages this - most business owners don't need to interact with it directly. **Class**\ A way to segment transactions by department, location, project, or product line for more granular reporting. Available on the Plus plan. **Counterparty**\ The vendor or customer on the other side of a transaction - who you paid or who paid you. **Entity**\ A single business within your Kick workspace. If you own multiple businesses, each one is a separate entity. **General Ledger (GL)**\ The complete record of all financial transactions in your business, organized by account. The underlying source of truth for all your reports. [**Lock**](/working-with-your-team/locks.md)\ A setting that prevents changes to a closed period. Your accountant typically locks periods after they've reviewed and finalized the books. **Memo**\ A free-text note attached to a transaction for context - useful for explaining what a charge was for. **Personal entity**\ A special entity in Kick for connecting personal bank accounts and credit cards. Transactions here don't post to your business books until you move them across. [**Profit & Loss (P\&L)**](/reports/profit-and-loss.md)\ A financial report showing your income, expenses, and net profit or loss over a period. Also called an income statement. [**Reconciliation**](/common-workflows/reconciliation.md)\ The process of matching your transactions in Kick against your official bank statements to confirm everything is accurate. Your accountant typically handles this. [**Rule**](/common-workflows/rules.md)\ An automated instruction that tells Kick how to handle specific transactions - for example, always categorizing Amazon transactions as *Supplies & Equipment*. [**Split**](/common-workflows/splits.md)\ Dividing a single transaction into multiple line items, each with its own category, entity, or class assignment. [**Task**](/working-with-your-team/tasks.md)\ A communication tool in Kick that lets your accountant or team assign you requests, questions, or action items tied directly to specific transactions. [**Transfer**](/common-workflows/transfers.md)\ Money moving between two accounts you own - like a bank-to-bank transfer or a credit card payment. Both sides need to be matched in Kick so the movement doesn't inflate your income or expenses. **Workspace**\ Your Kick account environment - the single place that contains all your entities, transactions, reports, and settings. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.kick.co/reference/glossary.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.