by Small Business Accounting Software | Jan 5, 2026 | Assets, Chart of Accounts, Terminologies
A contra-asset account that records the total depreciation expense charged against fixed assets. It reduces the book value of assets over time. This reflects wear, tear, or obsolescence.
by Small Business Accounting Software | Jan 5, 2026 | Accounting Proram, Terminologies
A safe test space within the system where users can try out features, train staff, or test integrations without affecting live data. Prevents errors in real records. Valuable for training and experimentation.
by Small Business Accounting Software | Jan 4, 2026 | Terminologies
Revenues must be recorded when earned, not when cash is collected. Ensures consistency and comparability across businesses. A cornerstone of accrual accounting.
by Small Business Accounting Software | Jan 1, 2026 | Terminologies
An internal control principle where responsibilities are divided so no single individual controls all aspects of a financial transaction. Reduces fraud risk. Commonly applied in cash handling and approval processes.
by Small Business Accounting Software | Dec 30, 2025 | Accounting Proram, Terminologies
Customizable settings that restrict or allow access to specific features or data. For example, giving staff access to invoicing but not payroll. Maintains confidentiality and reduces risks of fraud.
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.
