Plain-English meanings for the words you will meet in NeroBooks. Keep it open until they stop needing translating.
Everyday bookkeeping
| Word | What it means |
|---|---|
| Entry | one record of something that happened — a sale, a bill, an adjustment |
| Draft | saved but not approved; it changes nothing |
| Posted | approved; it counts |
| Approved | same as posted — NeroBooks uses both words |
| Journal | a two-sided adjustment, used for opening balances, transfers and depreciation |
| Debit / Credit | the two sides of a journal; both sides must add up to the same |
| Opening balances | where your accounts stood when NeroBooks took over |
| Reversal | an entry that cancels an earlier one |
| Chart of accounts | the list of buckets an amount can go in, like Bank accounts or Sales |
| Payment clearing | card money taken but not yet in the bank |
| Reconcile | check your records and an outside statement agree |
Reports
| Word | What it means |
|---|---|
| Profit and loss | what came in, what went out, and the difference |
| Balance sheet | what the business owns and owes on one date |
| Trial balance | every account balance, used to check the books balance |
| Cash movements | money in and out of cash and bank accounts |
| Net assets | what is left after what you owe comes off what you own |
| Two-year comparison | this period against the same dates last year |
VAT
| Word | What it means |
|---|---|
| Output VAT | VAT you charged customers on sales |
| Input VAT | VAT you paid suppliers on purchases |
| VAT evidence | the document that proves the VAT you are claiming |
| VAT ledger review | a report of the VAT in your records — not a VAT return |
Payroll
| Word | What it means |
|---|---|
| PAYE | Pay As You Earn — tax taken from pay before it reaches the employee |
| Gross pay | what someone earns before anything comes off |
| Tax code | the HMRC code that sets how much tax-free pay someone gets |
| Cumulative | tax worked out across the whole tax year so far |
| Week 1 / Month 1 | tax worked out on this pay period alone |
| NI category | the HMRC letter that sets how National Insurance works for a person |
| Annual method (AN) | the directors-only way of working out National Insurance |
| Opening PAYE balances | pay and tax already recorded for that person this tax year |
| Relief at source | a pension contribution taken after tax is worked out |
Tax and references
| Word | What it means |
|---|---|
| UTR | Unique Taxpayer Reference — a ten-digit HMRC number; companies and people have different ones |
| Accounts Office reference | the thirteen-character reference on HMRC PAYE letters |
| Employer PAYE reference | three digits, a slash, then your employer reference, like 123/AB456 |
| Disallowable | a cost in your accounts that tax rules do not let you deduct |
| Capital allowances | tax relief on equipment and other capital spending |
| Augmented profits | a Corporation Tax figure used to check whether marginal relief applies |
| Marginal relief | a reduction in Corporation Tax between the two rate thresholds |
| Depreciation | spreading the cost of equipment across the years you use it |
| Residual value | what an asset should be worth at the end of its life |
Connections
| Word | What it means |
|---|---|
| Bank feed | a read-only link that brings bank movements in to match |
| Open banking | the regulated way a bank shares your data with a service you authorise |
| Read-only | it can see, but cannot move money or change anything |
| Matched / Unmatched | whether a bank movement has been tied to an entry |
| Changed after match | it was matched, then something about it changed |
| LIVE / TEST | whether a connection is real or a rehearsal |
| Practice | an outside bookkeeper or accountant with limited access |
NeroBooks words
| Word | What it means |
|---|---|
| Payment inbox | NeroPay payments waiting to be turned into income |
| Register | a simple list you keep yourself, like contacts or equipment |
| Access until | when your NeroBooks access runs out |
| NeroAi | the in-product assistant; guidance and reports only |
Frequently asked questions
Posted or approved — what is the difference?
Nothing. Two words for the same thing: an entry you have approved, which now counts.
Do I need to understand debits and credits?
Only for journals. Recording income and bills uses ordinary language and never asks for a debit or a credit.
Is the VAT ledger review my VAT return?
No. It shows the VAT sitting in your records so you can look it over. It is not the nine boxes of a VAT return and must not be sent as one.
Which UTR does it want?
There is a field for each. The Company UTR is a limited company's Corporation Tax reference. The Self Assessment UTR is the proprietor's personal one.
What does ‘changed after match’ mean?
You matched a bank movement to an entry, and afterwards something about that movement changed. Worth a second look.
This article explains how NeroBooks works. It is general information about the software, not accounting, tax or financial advice. Nero Panda Ltd, trading as NeroPay, is not a tax agent, accountancy firm or financial adviser.
Still need help? Contact us at support@neropay.app or create a ticket.