GLOSSARY
The operator's glossary.
Plain-English definitions of the terms small accounting + bookkeeping firms (1–15 staff) actually run into. Free reference, no signup.
Realization rate
The share of billed work a firm actually collects at full rate. Write-downs and scope creep erode it; small gains are pure margin on work already done.
Utilization
The share of a staff member's available hours that are billable. Distinct from realization, which is about collecting on those billed hours.
Month-end close
The recurring process of reconciling accounts and finalizing a client's books for a period — where readiness gaps and slow document collection cause delays.
Engagement letter
A written agreement defining the scope, fees, and terms of an accounting engagement — the boundary that prevents scope creep.
Client onboarding
The steps to bring on a new client: intake, KYC, engagement letter, systems access, and a kickoff — often the messiest firm-side process.
Document collection (PBC)
Gathering client-Provided-By-Client records. Chasing them on a polite schedule, rather than ad hoc, is a major realization lever.
1099 / W-2 prep
Year-end information-return preparation. High-volume, deadline-bound work that benefits from batch assembly and partner sign-off.
Transaction categorization
Assigning ledger categories to transactions. In a review-first firm these land as 'pending' for partner sign-off, never posted automatically.
Anomaly detection
Flagging unusual transactions before close for human review — a quality control that prevents rework and surprises.
Advisory (CAS)
Client Accounting & Advisory Services — higher-margin recurring work beyond compliance, increasingly the growth engine for small firms.
Practice management
The system of record for firm operations — clients, tasks, deadlines, capacity — distinct from the general ledger.
Partner review
The control where a partner reviews and signs off on client-facing work before it goes out; no automated step bypasses it in a compliant firm.
IRS notice handling
Responding to agency correspondence — always phone-verified using a number from prior known correspondence, never the callback number on a suspicious notice.
Tax deadline calendar
The tracked schedule of filing and payment due dates across clients and entity types, the backbone of a firm's compliance rhythm.
Know the terms? Run the system.
Practice OS turns this vocabulary into a working operating layer for small accounting + bookkeeping firms (1–15 staff).