by Small Business Accounting Software | Aug 6, 2026 | Accounting Proram, Terminologies
A feature that lets users click on summary figures to see detailed transactions behind them. For example, from “Total Sales” down to individual invoices. Enhances transparency and understanding of numbers.
by Small Business Accounting Software | Aug 3, 2026 | Accounting Proram, Terminologies
Refers to accounting software hosted online rather than installed locally. It allows access from any device with internet connectivity. Cloud systems often include automatic backups and updates for convenience.
by Small Business Accounting Software | Aug 2, 2026 | Chart of Accounts, Terminologies
Money owed to suppliers for goods or services received but not yet paid. It is typically short-term and settled within the operating cycle. Proper management ensures supplier trust and cash flow balance.
by Small Business Accounting Software | Aug 1, 2026 | Terminologies
An indirect tax charged on goods and services at the point of sale. The business collects it on behalf of the government. Must be reported and remitted regularly.
by Small Business Accounting Software | Aug 1, 2026 | Terminologies
Financial reports of a parent company and its subsidiaries presented as one entity. Eliminates intercompany transactions to avoid double-counting. Required when control exists over subsidiaries.
by Small Business Accounting Software | Jul 29, 2026 | Terminologies
The difference between sales revenue and variable costs. It contributes toward covering fixed costs and generating profit. Used in cost-volume-profit analysis.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
The estimated value of an asset at the end of its useful life. Used in calculating depreciation. Also called salvage value.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
Requires expenses to be recorded in the same period as the revenues they help generate. This prevents mismatched reporting of costs and income. Essential for accurate net income measurement.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
End-of-period journal entries to update accounts for accruals, deferrals, or estimates. Examples include accrued wages or depreciation. They ensure revenues and expenses match the proper period.
by Small Business Accounting Software | Jul 27, 2026 | Assets, Chart of Accounts, Terminologies
Represents reductions in purchases when goods are returned or discounts are received for defective merchandise. It is a contra-account to Purchases. Provides insights into vendor reliability.
by Small Business Accounting Software | Jul 27, 2026 | Accounting Proram, Terminologies
The process of linking transaction categories to the correct accounts in the general ledger. Many systems automate mapping for common expenses and revenues. Ensures financial data is classified consistently.
by Small Business Accounting Software | Jul 25, 2026 | Chart of Accounts, Terminologies
Income from selling goods or services. It is the primary revenue stream for most companies. Recorded net of returns and discounts.
