INTRODUCTIONAt the General Conference of UNESCO held in Paris on 19th November, 1964, it was agreed that “a publication is a periodical if it constituted one issue in a continuous series under the same title” (Norman, 2008). Supporting this notion, a periodical literature is published at regular intervals over an indefinite period, individual issues in the series being unnumbered. On this note, a periodical literature is a publication with a distinctive title which appears at stated or regular intervals without prior decision as to when the last issue shall appear. It contains articles, stories, or other writings by several contributors. Periodical literature is used in its narrower sense as indicating transactions and percentages of societies, daily newspapers magazines, scholarly journals, trade journals, review journals. Like most underdeveloped and developing countries in the world inadequate funding of higher education libraries in Sierra Leone reflects on poorly developed periodical literature collection and as a result ineffective information service is provided to the dissatisfaction of users. Based on the value for research work in the academia, managing periodical literature in higher education libraries in Sierra Leone should be the need for a collection of standard periodical literature in academic libraries is necessary.HIGHER EDUCATIONAL INSTITUTIONS IN SIERRA LEONESierra Leone operates a 6-3-3-4 system of education are subdivided into six(6) years at the primary level, three(3) years at the Junior Secondary level, three(3) at the Senior Secondary level, and a minimum of four(4) years at the tertiary level. This sub-division allows the implementation of curriculum that takes account of the different pupils more fully. The general aim of education policy in Sierra Leone is to provide every child with an education which takes fully into an account: character development: his interest ability and aptitude; his emotional, psychological and physical well-being; the manpower needs of the country; the equal importance of both academic and non-academic education; the need for a literature and numerate populace.; the economic resources of the state, so that his education can be of use to the country and at the same time provide opportunities for him to be successful in life.Higher education is post-secondary education given in a university, college or polytechnique and is the stage of specialisation. The objectives of higher education vary according to the institution and course of study but generally include the acquisition physical and intellectual skills necessary for the development of both the individual and his society. In Sierra Leone, higher educational institutions form the basis of educational advancement following the completion of secondary education. Higher education is the most effective means altering the outlook of people through the broadening of their horizon. Societal development to a large extent is dependent on the human resource empowerment and development. Against this background, higher educational institutions play a pivotal role in developing the human resource to contribute positively and meaningfully to the socio-economic, political and educational development of Sierra Leone.Higher educational institutions in Sierra Leone are the University of Sierra Leone, Ernest Bai Koroma University and Njala University which are state owned and University of Makeni and Limkonwong University which are private owned. The constituent colleges under the University of Sierra Leone include Fourah Bay College(FBC), Institute of Public Administration and Management(IPAM) and College of Medicine and Allied Health Science(COMAHS); Bo Campus and Njala University. The higher educational institutions of collegiate status include Milton Margai College of Education and Technology; Eastern Polytechnigue; Bonthe Polytechnique; Freetown Teacher. Port Loko Teachers College and these offer courses leading to the award of diplomas and Certificate. On the contrary, the state-owned and private -owned universities offer Certificates, Diploma, Undergraduate and postgraduate degree courses in various disciplines in the faculty of their respective institutions. The curricula differs from institution to institution and curricula and programmes that require the use of periodical literature include medicine, law, engineering, education, agriculture, arts and humanities, social sciences, pure and applied sciences, technology, management and administration. To a greater extent, the Central Government, through subventions funds for higher educational institutions to enhance their smooth-running, even though some donor agencies do render financial assistance to these institutions in addition to internal funds generated by them.HIGHER EDUCATION LIBRARIES IN SIERRA LEONELibraries are storage of information and information is such a valuable commodity that its immense contribution to national development cannot be underestimated. Higher education libraries are the nerve centres of all academic activities. This simply implies that these libraries contribute to the teaching/learning and research programmes of the parent institutions by providing the needed information services for undergraduate and postgraduate students, teaching staff, researchers, administrative and technical staff. Effective academic work is dependent on quality information service and the library plays a significant role in this regard. According to Frederick Ken Nicol information is an important source used by organisations to deliver appropriate product or services to customers(2011 p.64). In this vein, higher education libraries manage information to satisfactorily meet the need of their clientele. Thus, information needs to be planned for in the same way that human and financial resources are planned to ensure increased productivity and efficient service delivery. Therefore, academic libraries like all other organisations that have thought out and systematic information planning process stand out to benefit more those that do not. Well-planned and organised information enhances effective service delivery.Higher education libraries in Sierra Leone support research work, community development and complement the teaching/learning processes in their respective parent institutions. In this regard, good management of higher education libraries is the organisations and maintenance of a well-balanced and vibrant collection in ensuring that the information needs of users are satisfactorily met. The different collections stocked in these institutions include but not limited to general book collection on all disciplines to loan by users out of the library building, specialised collection, reference collection and periodical literature and the quantum of their contents depends on the size of the library and its readership. Developing and maintaining a well-stocked collection as well as recruiting and empowering competent and qualified staff is largely dependent on the financial strength of the library. Therefore academic libraries need to be prioritised by their parent bodies when it comes to annual budget approval and allocations for their effective operations.Managing academic libraries could be linked with the services they offer. Since the operations of academic libraries are gear towards the provision of effective services, this is only actualised by purchasing multiple copies of textbooks, recent journals and a good collection of recommended texts for background reading to develop and organise an academic library for effective academic work.PERIODICAL LITERATURE IN HIGHER EDUCATION LIBRARIES AND MANAGEMENTThe provision of higher education libraries is necessary in complementing the teaching/learning process and for effective research work. In this regard, premium should be put on the management of periodical literature in higher education libraries taking into account their significance in providing current and researchable information.Since periodical literature forms part of the collection of an academic library, a large percentage of its budget allocated should be utilised for the purchase of current and popular journals. The periodicals to be acquired should be titles recommended by faculty members in collaboration with the periodical Librarian across disciplines offered in the institution such as Library Quarterly; Journal of Sociology; Chemical, Abstracts; Soils Science Journal; International Journal of Management; Clinical Science Quarterly. It is important to note that organising and maintaining periodicals in higher education libraries differ from institution to institution.Initially, periodicals were published to enable philosophers and Scientist to communicate their new ideas and thought to others interested in the same or similar subjects. Today, periodicals are principal media for publishing original learned papers and the state-of-the-art reviews. They are increasingly important as they can be useful for both current and retrospective information needed by academics.Lawson(2014) opined that the significance attached to periodical literature necessitates the development of a strong periodical literature collection as part of the library stock. The writer of this article, however revealed that periodicals are of great significance in higher education libraries in that:
new topics new discoveries and technologies are usually introduced in articles in periodicals;

they supply generally the latest possible information on a given subjects;

they are often the purely source of materials on new subjects;

they supply a particular article to a reader who has seen it cited in a book or another journal; and

they provide an overview of the state of a given discipline at a particular time.

Also periodical article may remain invaluable information sources for a generation or indeed for a longer period. Periodical articles are usually fairly concise, often very reliable and frequently well-illustrated. A point to note is that periodical carry current information on most disciplines.Further significance of periodical literature in higher education libraries as asserted is that they are primary source of new information, whether it be the result of research, news items, statistical data, announcement, correspondence, advertisements about a products and services or whatever. Each type of periodical is important to at least a group of people in academia, relating to their work, or leisure activities; some have ephemera existence; others may be useful for many years, even indefinitely. Taking into the consideration the significance of periodical literature in higher education libraries, their selection and acquisition either by subscription, donation or exchange should be a collaborative effort between the libraries and staff of the various colleges and universities.Periodical literature in higher education libraries in Sierra Leone include journals, indexes, abstracts, magazines, serials and their organisations and management differs from library to library. Issues of all received periodical literature are recorded on a kardex and any missing issue should be claimed from the publisher. Before displaying and shelving them, all recorded issues are claimed with the ex libri stamp of the library in question. When all the issues to complete a volume are received, they are then put together to be sent to bindery or conservation unit for either hard cover binding or stitching. Users of periodical literature in these institutions include students, lecturers and researchers. Periodical literatures are to be used within the walls of the Periodical Department. However, users are allowed to take them out to photocopy the required pages after signing for them. Lecturers are given conception to loan them on short term basis and loan records are kept to recall overdue issues. The maintenance of periodical literature is as importance as the other collections of the library.CHALLENGESThe major challenge higher education libraries in Sierra Leone face is funding. These libraries are inadequately funded by their parent bodies to a point that the smooth-running of their operations in ensuring effective information service delivery is greatly hampered. For an academic library to develop and maintain a vibrant periodical literature collection depend on how well it is funded. Collection development in higher education libraries in Sierra Leone has faced challenges of fulfilling the demand of their clientele with an increasing scarcity of funds to cope with the high cost of periodical publications. As the result of the law budget allocated to run these libraries, subscribing to the required journal title poses a serious problem for the Acquisition Librarian. Some volumes are incomplete; missing issues are hard to replace and the purchase of kardexes on which received journal issues are recorded is not quite feasible since the library operates within a limited financial resources.In effectively operating higher education libraries, both the human and financial factors should be balanced as these two are inseparable in achieving the desired goal of an organisation. Against this background, colleges and universities in Sierra Leone with the support of the Ministry of Technical and higher Education should re-defined their respective libraries so that premium could be placed on the subscription of relevant journal titles as well as claiming missing issues from publishers and their agents.Another challenge higher education libraries in Sierra Leone faced in managing their periodical literature collection is that of storage space. Most of these libraries with the exception of Fourah Bay College(FBC) library which has a separate Periodical Department, do not have enough space for newly acquired titles. The storage problems these libraries faced leads to the frequent weeding of periodical literature to create space for subsequent issues.The cost involved in conserving and preserving periodical volumes and issues is another challenge in managing periodical literature in higher education libraries. Unbound, unstitched issues can be easily snatched away especially for those in heavy demand. Completing the problems are those of heavy use of limited copies. Opening hours of periodical literature collection and loan system; inadequate staff situation and capacity building for staff to effectively manage periodical literature collection which implies that recruited staff should be trained academically and professionally to enhance their competence and efficiency; misuse and abuse of periodicals in terms of theft mutilation of important articles thereby depriving other users and rough handling that causes damage which simply means insecurity; digitisation of periodical literature collection as a way of modernising it in this information Age whereby information is processed, preserved and retrieve electronically in ensuring speed and accuracy; unavailability of online copies and photocopiers taking into account the growing number of periodical literature.Any treatment of collection development in higher education libraries cannot afford to overlook the question of periodicals which can be seen as a challenge. As valued sources of recent and reliable information for researchers and academics, periodicals are of great significance. The role they play for the advancement of knowledge to combat illiteracy cannot be underestimated. Periodical literature remains vital sources of information for a generational period. Higher education librarians may not be able to judge the intrinsic value of periodicals but should know something about their value to the institution in question and pattern of use which are important criteria for judging their value.Periodical literature can be of great significance in higher education libraries in Sierra Leone and so their effective management should be of concern to the librarians and university authorities. In developing periodical literature collections in academic libraries ensure balanced collection of current journal titles in subject areas relevant to the curriculum, librarian-faculty collaboration is crucial. The adequacy of periodical literature collection depend on journal titles selected and acquired to be added to the existing stock to meet the needs of the curriculum of the institution and those of users. In view of these challenges, the authorities of higher education libraries in Sierra Leone should see the need to solicit adequate funds through lobbying the Government, NGOs, parastatals and philanthropists to render financial assistance for the effective cooperation of their libraries. Advocating by librarians for good budget allocation is quite in place and the step in the right direction.CONCLUSIONHigher education libraries in Sierra Leone need to build and maintained vibrant periodical literature collections but this is dependent on how adequately they are funded by their respective parent institutions. Therefore, there is a need for an increase in the budget allocation of these libraries so that they can achieve their desired goals. A point-worth noting is that the appointment of qualified and competent staff in running the periodical collection of these libraries should be taken into keen consideration as both the human and financial factors should be well balanced in enhancing effective service delivery. Capacity building of the recruited staff to a large extent is fundamental for efficient performance ensures their upward mobility which is seen as a motivational factor. Staff of the periodical literature collection should be security-conscious to avoid the misuse and abuse of periodicals. The use of periodical should be closely monitored by staff so that pages are not mutilated and heavily used issues are not taken away by users whereby others are deprived. Photocopying facilities should be provided within the library, so that needed pages are photocopied by users on request. The availability of adequate funds enhances the digitisation of periodical literature collection thereby ensuring the availability of online copies which makes the management of periodical literature in higher education libraries in Sierra Leone advantageous. The librarians of these institutions should endeavour to revisit the opening hours of their periodical literature collections as long hours could allow profitable use of the time of users.REFERENCESDonaldson, Frank H. (2010). Managing periodicals in academic libraries. New York: Prentice Hall.Findlay, Jane Rose (2011). How to develop and run a periodical collection in a college library? London: ELM Publications.Lawson, Eric J.(2014). What is a periodical and its significance for researchers? Cambridge: Cambridge University Press.Nicol, Frederick Ken(2011). How to acquire and manage periodical publications in research libraries? New York: Academic Press.Norman, Betty Ann(2008). The use of periodicals in college libraries. London: Clive Bingley.

The United States Government has been presenting several schemes and plans to help the American residents enjoy health insurance benefits to the fullest. “Obamacare” is one such scheme that provides health insurance facilities for both the high-income and low-income groups in America. However, a report from a Washington D.C. firm, named Avalere Health, reveals that the price for one of the plans in Obamacare, called the silver plan, will rise to about 34% in 2018. The silver plan provides a decent coverage policy and is a bit high on the monthly premiums. For those who cannot afford to pay such high premiums; they need not worry, as there are policies besides this and a subsidy scheme, which will provide health insurance at low cost. While shopping for cheap health insurance plans, one should have sound knowledge about health insurance policies. Senior Vice President of Advisor Services at Manning & Napier, Shelby George advises the shoppers to always look for how much coverage is provided for the costs a company provides. In other words, one should not get carried away by the cheap rates, but should rather focus on how much coverage the insurance companies are providing for those cheap rates they advertise.In order to get best cheap health insurance, here is an explanation of the different policies available and a description of, whether one can get insurance for “free”.Subsidies and other Health Insurance Plans:With an aim to provide all Americans with Health Insurance coverage, one of the many useful plans proposed by the Government, is that of ‘subsidies’. A subsidy, in simple words, is the amount paid by the Government to the insurance companies to provide health insurance facilities to those with low incomes. This means that people falling into the low-income group will be able to enjoy health insurance benefits through the use of subsidies, which would otherwise be rejected by insurance companies on any other short-term policy claim.An individual who earns about $48,000 and a family of 4, which earns somewhere less than $98,000 are those who can enjoy the benefits of subsidies. Hence, people with low incomes can enjoy good cheap health insurance with the help of subsidies. However, these subsidy schemes proposed by the Obamacare plan are more likely to be altered or eliminated on the whole by the Trump administration.Talking about other health insurance plans, a silver plan will cover up to 70% of a person’s health care charges while a bronze plan will cover up to 60% of the costs and the remaining percentage of charges will have to be paid out of the person’s pockets. Now, comparing these two plans, if one wishes to spend absolutely NO money out of one’s pockets, then choosing a bronze plan along with a subsidy will be of great help. For those who cannot afford to pay out of one’s own pockets, the bronze plan coverage of 60% along with the remaining 40% covered by subsidies will help to enjoy cheap health insurance.What Type of Policy One Can Choose?The first step to get hold of the best cheap health insurance is to be aware of what policy suits one’s needs. Here is a list of two options explained briefly, so that one can choose the best fit.1. Short-Term Policy: A short-term policy is for those people, who do not qualify to avail subsidies. In other words, people for whom it becomes ‘unaffordable’ to get health insurance are advised to choose this policy. Here the term ‘unaffordable’ is described as the cost that exceeds above 8% of an individual or a family’s annual income. According to, Nate Purpura, the Vice President of Consumer Affairs (ehealth.com), individuals whose income ranges from $49,000 to $69,000 and families that earn somewhere between $99,000 and $129,000, are supposed to go for short-term policies.Hence, if one finds it difficult to pay expensive premiums and avail health insurance, then going for the short-term policy is highly recommended. However, there are no penalties if one doesn’t wish to have any health insurance. But, on a positive note, it is beneficial for the individuals themselves, if they have some financial protection that will be of benefit in unfriendly circumstances.Here are a few noteworthy details about short-term policies:

These policies usually last up to 3 months and can be extended till 9 months (in 3-month period renewal).

According to the new rules proposed by President Trump, having a short-term policy will be mandatory for all individuals. However, this rule has not yet been passed, but will soon be in effect.

These policies do not provide coverage for pre-existing illnesses, i.e. diseases that one is suffering from, before applying for the policy.

If at all one wishes to include such pre-existing illnesses in the coverage plan, then the premiums will increase substantially.

Unlike Obamacare schemes, short-term policies will not cover charges for maternal care, injuries due to abuse, and mental health treatment.

On having a short-term policy, one can avail decent health care facilities at about $100 premium a month.

On an overall basis, despite the low coverage options it provides, those who are looking for cheap health insurance for individual or cheap health insurance for families, can avail great benefits from this policy.2. Combined Policy or Combo of Policies:Traditional policies or in other words plans with higher premiums will provide coverage for all the expensive hospital bills in case of risky illnesses or accidents. Whereas, choosing short-term plans will simply cover the normal doctor-visits. But if one wishes to avail the benefits of both the policies, i.e. get coverage for risky illnesses as well as for normal or routine sickness (like a cough, cold, fever), then insurance companies these days are offering combo packages.In the recent past, people used to apply for both policies separately in order to avail coverage in both cases. This was getting difficult for the insurers to calculate different percentages and amounts; hence the plan for combo policies came up, allowing people to avail both benefits within a single policy. However, as evident as it seems, going for these policies will definitely cause one to pay premiums higher than usual.So a gist of all the above-discussed points is that one should not always get attracted by offers that merely advertise of providing cheap health insurance for individuals, instead one should look for the quality of coverage they provide for the cheap insurance rates. Shopping for health insurance also requires thorough research and study, just like any other insurance policies. Since this is an issue concerning one’s health; it is nowhere worthy to just be worried about money. Quality service always comes at pay hence one should be wise enough to search for policies that provide affordable and quality health insurance plans.

Bling Lingo made simpleToday…again…I was scratching my head over an accounting mess, for which the owner had paid a bookkeeper many dollars over many years. How did it happen? If you don’t know the basics, you are a sitting duck, my friend. You know, accountants do it on purpose. They use weird words to make you think that they are smarter than you are. To keep you in the dark. Or, the less nasty ones just don’t know better.Good accountants and bookkeepers want you to learn the lingo. They want to help you make the bling, baby! So, read and learn. Keep this glossary handy as you work with your professional money managers. Use it to begin your journey to financial literacy!Bling Lingo – Glossary of common Accounting Terms…ACCOUNTING EQUATION: The Balance Sheet is based on the basic accounting equation. That is:Assets = Equities.Equity of the company can be held by someone other than the owner. That is called a liability. Because we usually have some liabilities, the accounting equation is usually written…Assets = Liabilities + Owner’s Equity.ACCOUNTS: Business activities cause increases and decreases in your assets, liabilities and equity. Your accounting system records these activities in accounts. A number of accounts are needed to summarize the increases and decreases in each asset, liability and owner’s equity account on the Balance Sheet and of each revenue and expense that appears on the Income Statement. You can have a few accounts or hundreds, depending on the kind of detailed information you need to run your business.ACCOUNTS PAYABLE: Also called A/P. These are bills that your business owes to the government or your suppliers. If you have ‘bought’ it, but haven’t paid for it yet (like when you buy ‘on account’) you create an account payable. These are found in the liability section of the Balance Sheet.ACCOUNTS RECEIVABLE: Also called A/R. When you sell something to someone, and they don’t pay you that minute, you create an account receivable. This is the amount of money your customers owe you for products and services that they bought from you…but haven’t paid for yet. Accounts receivable are found in the current assets section of the Balance Sheet.ACCRUAL BASIS ACCOUNTING: With accrual basis accounting, you ‘account for’ expenses and sales at the time the transaction occurs. This is the most accurate way of accounting for your business activities. If you sell something to Mrs. Fernwicky today, you would record the sale as of today, even if she plans on paying you in two months. If you buy some paint today, you account for it today, even if you will pay for it next month when the supply house statement comes. Cash basis accounting records the sale when the cash is received and the expense when the check goes out. Not as accurate a picture of what is happening at you company.ASSETS: The ‘stuff’ the company owns. Anything of value – cash, accounts receivable, trucks, inventory, land. Current assets are those that could be converted into cash easily. (Officially, within a year’s time.) The most current of current assets is cash, of course. Accounts receivable will be converted to cash as soon as the customer pays, hopefully within a month. So, accounts receivable are current assets. So is inventory.Fixed assets are those things that you wouldn’t want to convert into cash for operating money. For instance, you don’t want to sell your building to cover the supply house bill. Assets are listed, in order of liquidity (how close it is to cash) on the Balance Sheet.BALANCE SHEET: The Balance Sheet reflects the financial condition of the company on a specific date. The basic accounting formula is the basis for the Balance Sheet:Assets = Liabilities + Owner’s EquityThe Balance Sheet doesn’t start over. It is the cumulative score from day one of the business to the time the report is created.CASH FLOW: The movement and timing of money, in and out of the business. In addition to the Balance Sheet and the Income Statement, you may want to report the flow of cash through your business. Your company could be profitable but ‘cash poor’ and unable to pay your bills. Not good!A cash flow statement helps keep you aware of how much cash came and went for any period of time. A cash flow projection would be an educated guess at what the cash flow situation will be for the future.Suppose you want to buy a new truck with cash. But that purchase will empty the bank account and leave you without any cash for payroll! For cash flow reasons, you might choose to buy a truck on payments instead.CHART OF ACCOUNTS: A complete listing of every account in your accounting system. Every transaction in your business needs to be recorded, so that you can keep track of things. Think of the chart of accounts as the peg board on which you hang the business activities.CREDIT: A credit is used in Double-Entry accounting to increase a liability or an equity account. A credit will decrease an asset account. For every credit there is a debit. These are the two balancing components of every journal entry. Credits and debits keep the basic accounting equation (Assets = Liabilities + Owner’s Equity) in balance as you record business activities.DEBIT: A debit is used in Double-Entry accounting to increase an asset account. A debit will decrease a liability or an equity account. For every debit there is a credit.DIRECT COSTS: Also called cost of goods sold, cost of sales or job site expenses. These are expenses that include labor costs and materials. These expenses can be directly tracked to a specific job. If the job didn’t happen, the direct costs wouldn’t have been incurred. (Compare direct cost with indirect costs to get a better understanding of the term.) Direct costs are found on the Income Statement, right below the income accounts.Income – Direct Costs = Gross Margin.DOUBLE-ENTRY ACCOUNTING: An accounting system used to keep track of business activities. Double-Entry accounting maintains the Balance Sheet: Assets = Liabilities + Owner’s Equity. When dollars are recorded in one account, they must be accounted for in another account in such a way that the activity is well documented and the Balance Sheet stays in balance.You may not need to be an expert in Double-Entry accounting, but the person who is responsible for creating the financial statements better get pretty good at it. If that is you, go back through the book and focus on the ‘gray’ sheets. Study the examples and see how the Double-Entry method acts as a check and balance of your books.Remember the law of the universe…what goes around, comes around. This is the essence of Double-Entry accounting.EQUITY: Funds that have been supplied to the company to get the ‘stuff’. Equities show ownership of the assets or claims against the assets. If someone other than the owner has claims on the assets, it is called a liability.Total Assets – Total Liabilities = Net EquityThis is another way of stating the basic accounting equation that emphasizes how much of the assets you own. Net equity is also called net worth.EXPENSE: Also called costs. Expenses are decreases in equity. These are dollars paid out to suppliers, vendors, Uncle Sam, employees, charities, etc. Remember to pay bills thankfully, because it takes money to make money. Expenses are listed on the Income Statement. They should be split into two categories, direct costs and indirect costs. The basic equation for the Income Statement is:Revenues – Expenses = Profit(You’ll see a profit if there are more revenues than expenses!…or a loss, if expenses are more than revenues.)Remember, all costs need to be included in your selling price. The customer pays for everything. In exchange, you give the customer your services. What a deal!FINANCIAL STATEMENTS: refer to the Balance Sheet and the Income Statement. The Balance Sheet is a report that shows the financial condition of the company. The Income Statement (also called the Profit and Loss statement or the ‘P&L’) is the profit performance summary.Financial Statements can include the supporting documents like cash flow reports, accounts receivable reports, transaction register, etc. Any report that measures the movement of money in your company.Financial Statements are what the bank wants to see before it loans you money. The IRS insists that you share the score with them, and asks for your Financial Statements every year.GENERAL LEDGER: Once upon a time, accounting systems were kept in a book that listed the increases and decreases in all the accounts of the company. That book was called the general ledger. Today, you probably have a computerized accounting system. Still, the general ledger is a collection of all Balance Sheet and Income Statement accounts…all the assets, liabilities and equity. It is the report that shows ALL the activity in the company. Often this listing is called a detail trial balance on the report menu of your accounting program. The detail trial balance is my favorite report when I am trying to find a mistake, or make sure that we have entered information in the right accounts.GROSS PROFIT: This is how much money you have left after you have subtracted the direct costs from the selling price.Income – Direct Costs = Gross Profit. When this is expressed as a percentage, it is call Gross Margin.This is a good number to scrutinize each month, and to track in terms of percentage to total sales over the course of time. The higher the better with gross margin! You need to have enough money left at this point to pay all your indirect costs and still end up with a profit.INCOME STATEMENT: also called the Profit and Loss Statement, or P&L, or Statement of Operations. This is a report that shows the changes in the equity of the company as a result of business operations. It lists the income (or revenues, or sales), subtracts the expenses and shows you the profit J! (Or loss L.) This report covers a period of time and summarizes the money in and the money out.The Income Statement is like a magnifying glass that shows the detail of activities that cause changes in the equity section of the Balance Sheet.INDIRECT COST: Also called overhead or operating expenses. These expenses are indirectly related to the services you provide to customers. Indirect costs include office salaries, rent, advertising, telephone, utilities…costs to keep a ‘roof overhead’. Every cost that is not a direct cost is an indirect cost. Indirect costs do not go away when sales drop off.INVENTORY: Also called stock. These are materials that you purchase with the intent to sell, but you haven’t sold them yet. Inventory is found on the balance sheet under assets. It is considered a current asset because you will convert it into cash as soon as you sell it. Beware of turning cash into inventory. You may run out of cash. Work with your suppliers to keep inventory SMALL.JOURNAL: This is the diary of your business. It keeps track of business activities chronologically. Each business activity is recorded as a journal entry. The Double-Entry will list the debit account and the credit account for each transaction on the day that it occurred. In your reports menu in your accounting system, the journal entries are listed in the transaction register.LIABILITIES: Like equities, these are sources of assets – how you got the ‘stuff’. These are claims against assets by someone other than the owner. This is what the company owes! Notes payable, taxes payable and loans are liabilities. Liabilities are categorized as current liabilities (need to pay off within a year’s time, like payroll taxes) or long term liabilities (pay-back time is more than a year, like your building mortgage).MONEY: Also called moola, scratch, gold, coins, cash, change, chicken feed, green stuff, BLING, etc. Money is the form we use to exchange energy, goods and services for other energy, goods and services. Used to buy things that you need or want. Beats trading for chickens in the global marketplace.Money in and of itself is neither good or bad. I want you to make lots of it, and do great things with it!NET INCOME: Also called net profit, net earnings, current earnings or bottom line. (No wonder accounting is confusing – look at all those words that mean the same thing!)After you have subtracted ALL expenses (including taxes) from revenues, you are left with net income. The word net means basic, fundamental. This is a very important item on the income statement because it tells you how much money is left after business operations. Think of net income like the score of a single basketball game in a series. Net income tells you if you won or lost, and by how much, for a given period of time.By the way, if net income is a negative number, it’s called a loss. You want to avoid those. The net income is reflected on the Balance Sheet in the equity section, under current earnings (or net profit). Net income results in an increase in owner’s equity. A loss results in a decrease in owner’s equity.RETAINED EARNINGS: The amount of net income earned and retained by the business. If net income is like the score after a single basketball game, retained earnings is the lifetime statistic. Retained earnings is found in the equity section of the Balance Sheet. It keeps track of how much of the total owner’s equity was earned and retained by the business versus how much capital has been invested from the owners (paid-in capital).Each month, the net profits are reflected in the Balance Sheet as current earnings. At the end of the year, current earnings are added to the retained earnings account.