by Small Business Accounting Software | Dec 29, 2025 | Terminologies
Processes designed to safeguard assets, ensure reliable reporting, and promote compliance with laws. Includes separation of duties, approvals, and reconciliations. A strong system reduces fraud risk.
by Small Business Accounting Software | Dec 27, 2025 | Terminologies
The price at which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Often used in financial reporting and investment accounting. Ensures transparency in valuations.
by Small Business Accounting Software | Dec 26, 2025 | Chart of Accounts, Expenses, Terminologies
The cost of borrowing money through loans or bonds. Recorded based on accruals, not just payments. Impacts net income directly.
by Small Business Accounting Software | Dec 26, 2025 | Terminologies
The fundamental formula: Assets = Liabilities + Equity. It shows the relationship between what a company owns, owes, and the residual interest of owners. This equation must always stay in balance.
by Small Business Accounting Software | Dec 24, 2025 | Chart of Accounts, Expenses, Terminologies
Estimation of receivables that are unlikely to be collected. Recorded to align with the matching principle. Prevents overstated income.
by Small Business Accounting Software | Dec 23, 2025 | Chart of Accounts, Expenses, Terminologies
Spending on meals, events, or hospitality to build client relationships. Subject to regulatory and tax restrictions. Needs proper documentation for deductions.
by Small Business Accounting Software | Dec 20, 2025 | Terminologies
Assumes that a business will continue operating into the foreseeable future. This justifies reporting assets at historical cost rather than liquidation value. If the going concern is doubtful, disclosures are required.
by Small Business Accounting Software | Dec 20, 2025 | Accounting Proram, Terminologies
A feature that allows recording transactions in different currencies. Essential for businesses dealing with international clients or suppliers. Automatically updates conversions based on exchange rates.
by Small Business Accounting Software | Dec 19, 2025 | Terminologies
The pricing of goods and services exchanged between divisions of the same company, often across borders. Regulated to prevent tax avoidance. Requires careful documentation.
by Small Business Accounting Software | Dec 18, 2025 | Chart of Accounts, Terminologies
Wages owed to employees for work performed but not yet paid. Recorded as a current liability until settled. Ensures accurate matching of labor costs to the correct period.
by Small Business Accounting Software | Dec 17, 2025 | Chart of Accounts, Expenses, Terminologies
Fees incurred for bank services such as account maintenance, wire transfers, or overdrafts. Usually small but recurring. Essential for financial accuracy.
by Small Business Accounting Software | Dec 17, 2025 | Accounting Proram, Terminologies
Modules that project future financial outcomes based on historical data and assumptions. They help businesses plan budgets, manage cash flow, and prepare for growth. Useful for scenario analysis.
