Every Small Business Owner gets to understand that finance and accounting are two critical elements in the language of business. While he or she does not need to be an expert in either of these disciplines, an above average demonstration of intelligent ignorance in both of them is necessary for entrepreneurial success.

The good news is that the Small Business Owner doesn’t need to be a genius to acquire the competence to appreciate the flows and ebbs of business. Here are10 finance and accounting terms that a Small Business Owner should know:

1. Cash Flow: This is cash that flows into and flows out of the business, through trading activities, in a given period, say a month, quarter, half-year or full year. It is the difference between the cash available at the start of a period and the cash at the end of the same period. It is positive when the closing balance is higher than the opening balance, and negative when the reverse occurs.

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