by Small Business Accounting Software | Sep 9, 2026 | Terminologies
A detailed ledger that supports a control account in the general ledger, such as Accounts Receivable or Accounts Payable. It contains individual customer or vendor balances. Helps businesses track details without cluttering the general ledger.
by Small Business Accounting Software | Sep 9, 2026 | Chart of Accounts, Terminologies
Covers revenues not derived from primary business activities. Examples include gains from asset sales or foreign exchange. Provides supplementary earnings.
by Small Business Accounting Software | Sep 8, 2026 | Terminologies
The book of original entry where all transactions are first recorded before being posted to the ledger. Each entry shows accounts affected, debit and credit amounts, and a description. It ensures chronological documentation of activities.
by Small Business Accounting Software | Sep 5, 2026 | Chart of Accounts, Terminologies
Equity that has preferential rights to dividends or liquidation proceeds compared to common stock. Usually non-voting but offers stable returns. Hybrid between debt and equity.
by Small Business Accounting Software | Sep 3, 2026 | Accounting Proram, Terminologies
A preliminary bill of sale sent before delivery of goods or services. It outlines expected charges but is not yet a legally binding invoice. Helps customers prepare payment in advance.
by Small Business Accounting Software | Sep 3, 2026 | Chart of Accounts, Terminologies
Fees earned from providing advisory or professional services. Often project-based or hourly. A common account for service-oriented businesses.
by Small Business Accounting Software | Sep 1, 2026 | Terminologies
A principle stating that only information significant enough to influence decisions needs to be reported. Minor errors or omissions may be disregarded. Materiality depends on both size and context.
by Small Business Accounting Software | Aug 31, 2026 | Terminologies
The systematic allocation of the cost of tangible assets (e.g., buildings, equipment) over their useful lives. It reflects wear and obsolescence. Depreciation is an expense but does not involve cash outflow.
by Small Business Accounting Software | Aug 29, 2026 | Terminologies
Indirect costs that cannot be directly traced to products or services, such as utilities or administrative salaries. Overhead is allocated to ensure accurate costing. Helps in determining product profitability.
by Small Business Accounting Software | Aug 28, 2026 | Chart of Accounts, Terminologies
Expenses incurred but not yet paid, such as wages, utilities, or taxes. They ensure liabilities are recorded when incurred, not just when paid. This maintains accrual-based accuracy.
by Small Business Accounting Software | Aug 28, 2026 | Accounting Proram, Terminologies
A unified view combining results from multiple entities, locations, or accounts. Useful for multi-branch businesses or holding companies. Provides top-level insights without needing to run separate reports.
by Small Business Accounting Software | Aug 27, 2026 | Chart of Accounts, Expenses, Terminologies
Payments for services from external experts like lawyers, accountants, or consultants. Recognized when services are rendered. Often project-specific.
