Best Certified Public Accountants in Norman, OK

Confused by all of the accounting terms out there? Don’t worry – this post “accounts” for that. In fact, we’ve put together a whole series dedicated to defining some of the accounting terms our clients may come across. Take a look at our first round of definitions below! Return on Investment (ROI): ROI measures how profitable an investment is. To determine your ROI, divide the amount you’ve gained from the investment by the amount you spent on the investment. Amortization: Through amortization, you pay back a loan in smaller, periodic payments. These payments, usually paid monthly, pay back part of the principal and part of the interest on the loan. Taxable income: This is the income that is eligible for taxation. It can include employee income or self-employment/freelance income as well as money made from certain investments. Hopefully, those definitions were helpful. We look forward to sharing two more rounds of accounting definitions with you! Keep your eyes out for our next post on business accounting terms.