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.
by Small Business Accounting Software | Jul 25, 2026 | Terminologies
A tax on specific goods such as alcohol, fuel, or tobacco. Usually included in the product price. Requires careful compliance and reporting.
by Small Business Accounting Software | Jul 24, 2026 | Assets, Chart of Accounts, Terminologies
Assets held for more than a year, such as stocks, bonds, or real estate. They are not intended for quick liquidation. Used for strategic growth or income generation.
by Small Business Accounting Software | Jul 24, 2026 | Terminologies
An organized listing of all account names and numbers a business uses to record financial transactions. It serves as a framework for classifying assets, liabilities, equity, revenues, and expenses. The COA keeps financial data consistent and structured across...
by Small Business Accounting Software | Jul 22, 2026 | Chart of Accounts, Terminologies
Amounts withheld from employee wages (like taxes or retirement contributions) that must be remitted. It ensures accurate compliance with payroll regulations. Cleared once payments are made.
by Small Business Accounting Software | Jul 21, 2026 | Accounting Proram, Terminologies
Software installed directly on a company’s local computers or servers. Provides more direct control over data and security but requires manual updates and maintenance. Common for businesses that prefer internal hosting.
by Small Business Accounting Software | Jul 18, 2026 | Terminologies
An accounting method where every transaction affects at least two accounts, with equal debits and credits. This system ensures the accounting equation (Assets = Liabilities + Equity) always remains balanced. It is the global standard for accurate accounting.
