by Small Business Accounting Software | Nov 22, 2025 | Chart of Accounts, Terminologies
A long-term liability secured by real property. Payments typically include both principal and interest. Often broken into current and long-term portions.
by Small Business Accounting Software | Nov 20, 2025 | Terminologies
Journal entries made at the end of an accounting period to reset temporary accounts (revenues, expenses, drawings) to zero. Their balances transfer to permanent accounts like capital or retained earnings. This prepares books for the next cycle.
by Small Business Accounting Software | Nov 17, 2025 | Chart of Accounts, Expenses, Terminologies
Payments for leased property or equipment used in operations. Recognized monthly or per the rental agreement. A major recurring operating cost.
by Small Business Accounting Software | Nov 16, 2025 | Accounting Proram, Terminologies
Transactions are recorded instantly into the general ledger without waiting for batch updates. Provides up-to-date financial data. Supports faster decision-making.
by Small Business Accounting Software | Nov 15, 2025 | Assets, Chart of Accounts, Terminologies
Represents money available in currency and bank accounts. This account reflects the most liquid asset that a business can immediately use to settle obligations or invest. It is constantly updated as deposits and withdrawals occur.
by Small Business Accounting Software | Nov 14, 2025 | Chart of Accounts, Terminologies
Money received before goods or services are delivered. It is a liability until the company fulfills its obligation. Examples include advance payments for subscriptions or bookings.
by Small Business Accounting Software | Nov 14, 2025 | Terminologies
A U.S. law passed in 2002 to enhance corporate governance and financial transparency. Requires stricter internal controls and auditor independence. Applies mainly to publicly traded companies.
by Small Business Accounting Software | Nov 10, 2025 | Chart of Accounts, Terminologies
Earnings from facilitating sales or services on behalf of others, such as real estate agents or brokers. Typically a percentage of transaction value. Recorded when earned.
by Small Business Accounting Software | Nov 9, 2025 | Terminologies
The estimated selling price of inventory minus costs of completion and selling. Ensures inventory is not overstated. A conservative valuation method.
by Small Business Accounting Software | Nov 7, 2025 | Terminologies
Money received before services are performed or goods are delivered. Treated as a liability until obligations are fulfilled. Common with subscriptions and advance bookings.
by Small Business Accounting Software | Nov 6, 2025 | Terminologies
The basic record of a financial transaction showing which accounts are debited and credited. Every transaction begins with a journal entry. Proper documentation ensures accuracy in ledgers.
by Small Business Accounting Software | Nov 4, 2025 | Accounting Proram, Terminologies
Tracks purchases, depreciation, and disposals of long-term assets like equipment and buildings. Automates depreciation calculations. Ensures compliance with accounting standards.
