Glossary
Terms you come across in bookkeeping, in the annual report and in conversations with the Swedish Tax Agency, explained in plain English by our accounting consultants.
Accruals and deferrals (periodisering)Allocating income and expenses to the period they belong to, not to when they are paid.Audit requirement (revisionsplikt)An obligation for larger limited companies (aktiebolag, AB) to have an auditor who reviews the annual report.Capital incomeIncome from capital: interest, dividends and gains on the sale of, for example, shares, funds and homes.Cash flow statementA report of the money coming in and going out during the year, split into operations, investments and financing.Cash methodBookkeeping method where invoices are recorded when they are paid, permitted for smaller businesses.Chart of accountsThe list of accounts used in the bookkeeping, in Sweden usually the BAS chart of accounts.Close company (fåmansbolag)A limited company in which four or fewer shareholders own more than half of the votes.Control balance sheetA special balance sheet the board must prepare when there is reason to believe that equity is less than half of the share capital.Current assetAn asset expected to be turned over within a year: inventory, trade receivables, cash and bank.DepreciationSpreading the cost of a fixed asset over the years it is used.Dividends in a limited company (aktiebolag, AB)Profit that the general meeting decides to distribute to the shareholders.EquityThe difference between a company's assets and liabilities: the owners' share of the business.Fixed assetAn asset intended for long-term use in the business, for example machinery and premises.Group contributionA transfer of profit between companies in the same group to even out the tax.Income statementA report showing income minus expenses over a period, in other words the profit or loss.Invoicing methodA bookkeeping method in which invoices are recorded when they are issued or received.Preliminary taxTax paid on an ongoing basis during the year while waiting for the final tax to be set.Self-employment contributions (egenavgifter)Social security contributions that sole traders and partners in trading partnerships pay on their profit.Share capitalThe capital the owners put in when a limited company (aktiebolag, AB) is formed, at least SEK 25 000.Shareholder contributionMoney an owner puts into the company without receiving new shares, either conditional or unconditional.
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