Many owners of small to medium sized businesses, who are involved in the day to day operation, find themselves mystified by the quantity of financial terminology that they are supposed to absorb and understand. As technology evolves this is something that is getting steadily worse.
They have to understand about merchant banking and PCI standards for online transactions. They must know about all the different types of accounts from active accounts and current accounts to checking accounts and saving accounts. AND they should know which will be most beneficial to their business and which banks and finance houses are offering the most advantageous terms.
They should be familiar with accruals and reconciliations, amortization, statements and assets. They need to have a working knowledge of all financial matters even if they are not directly handling the finance and accounting themselves, as they will need to be able to discuss issues with their accountants or the tax authorities.
They must also really understand how balance sheets and profit and loss accounts work, as they need to have a good grip on the financial health of the business at any time.
If that is not enough, they should also have time to run the business and make a profit! There are many books and internet sites available to help business owners through the maze of terminology, but this is one of the many aspects of owning a business that can be really tough on the non-financially minded.