by Small Business Accounting Software | Sep 17, 2025 | Chart of Accounts, Expenses, Terminologies
Reductions in sales prices given to customers, usually for early payment or promotions. Recorded separately from gross sales to show net sales. Useful for analyzing pricing strategies.
by Small Business Accounting Software | Sep 16, 2025 | Assets, Chart of Accounts, Terminologies
Costs incurred for projects still under development, such as a building not yet finished. This account accumulates expenses until the asset is ready for use. Once complete, the balance is transferred to a fixed asset category.
by Small Business Accounting Software | Sep 14, 2025 | Chart of Accounts, Terminologies
Declared dividends owed to shareholders but not yet distributed. Once declared, they are an obligation until paid. They reduce retained earnings.
by Small Business Accounting Software | Sep 13, 2025 | Chart of Accounts, Expenses, Terminologies
Tracks personal expenses mistakenly or intentionally paid from business funds (e.g., personal groceries, vacations). In accounting, these are recorded separately for clarity, then reclassified as Owner’s Drawings. Ensures accurate tax reporting.
by Small Business Accounting Software | Sep 11, 2025 | Chart of Accounts, Terminologies
Represents ownership interest in a corporation. Issued shares grant voting rights and residual claim on profits. Equity increases when stock is sold to investors.
by Small Business Accounting Software | Sep 9, 2025 | Chart of Accounts, Expenses, Terminologies
Costs to keep equipment, property, or vehicles operational. Unlike improvements, repairs are expensed immediately. Critical for sustaining operations.
by Small Business Accounting Software | Sep 9, 2025 | Accounting Proram, Terminologies
A tool that allows businesses to prepare formal price estimates or quotes for customers. Once accepted, these can often be converted into invoices automatically. Speeds up sales-to-billing processes.
by Small Business Accounting Software | Sep 8, 2025 | Assets, Chart of Accounts, Terminologies
Consumable items used in daily operations, like paper, ink, or cleaning products. Supplies are assets until they are consumed. At usage, they are expensed.
by Small Business Accounting Software | Sep 7, 2025 | Chart of Accounts, Expenses, Terminologies
Covers fuel, repairs, and upkeep of company-owned vehicles. Essential for logistics and transportation-heavy businesses. Requires mileage tracking for compliance.
by Small Business Accounting Software | Sep 5, 2025 | Chart of Accounts, Expenses, Terminologies
Hourly labor costs separate from salaried staff. Found in manufacturing, retail, or hospitality. Often more variable than salaries.
