> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.usetabby.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Bookkeeping glossary

### What is AI bookkeeping?
AI bookkeeping is software that uses artificial intelligence to import, categorize and match business transactions and produce financial statements, with a person reviewing the results.

### What is a bank feed?
A bank feed is the automatic flow of transactions from your bank or card into your bookkeeping software, usually through a service like Plaid.

### What is a chart of accounts?
A chart of accounts is the list of categories, called accounts, that your business uses to sort every transaction: assets, liabilities, equity, income and expenses.

### What is a general ledger?
The general ledger is the complete record of every transaction in your books, organized by account. Every report is built from it.

### What is double-entry bookkeeping?
Double-entry bookkeeping records every transaction in at least two accounts, a debit and an equal credit, so the books always balance.

### What is a journal entry?
A journal entry is a manual record of debits and credits, used for adjustments that don't come from a bank feed, such as depreciation, opening balances or corrections.

### What is bank reconciliation?
Bank reconciliation is checking that the transactions and ending balance in your books match your bank statement for the same period.

### What is a Profit & Loss statement?
A Profit & Loss statement, also called an income statement, shows income minus expenses over a period, which equals your net profit or loss.

### What is a Balance Sheet?
A Balance Sheet shows what your business owns (assets), owes (liabilities) and the owner's share (equity) on a specific date.

### What is a Statement of Cash Flows?
A Statement of Cash Flows shows how cash moved in and out of your business from operations, investing and financing over a period.

### What is cash vs accrual accounting?
Cash basis records income and expenses when money changes hands. Accrual basis records them when they're earned or incurred, for example when you send an invoice or receive a bill.

### What is Schedule C?
Schedule C is the IRS form sole proprietors and single-member LLCs use to report business income and expenses with their personal tax return.

### What is a 1099-NEC?
Form 1099-NEC reports payments to a non-employee, such as an independent contractor. For payments made in 2026 and later, you file one when you pay a contractor $2,000 or more in a year. For 2025 and earlier, the threshold was $600.

### What is a W-9?
Form W-9 is how a contractor gives you their legal name and taxpayer ID, which you need to issue a 1099.

### What is a class in bookkeeping?
A class is a tag you add to transactions to track profit by property, project, location or service line, separately from your chart of accounts.

### What is an owner's draw?
An owner's draw is money the owner takes out of the business for personal use. It reduces equity and isn't a business expense.

### What is Plaid?
Plaid is a financial data network that connects apps like Tabby to your bank with read-only access, without sharing your bank login.