by Small Business Accounting Software | Dec 1, 2025 | Terminologies
Measures how effectively a company generates profit from shareholders’ investments. Calculated as Net Income ÷ Shareholders’ Equity. A key metric for investors.
by Small Business Accounting Software | Nov 30, 2025 | Assets, Chart of Accounts, Terminologies
Highly liquid investments intended to be held for less than a year, such as treasury bills or certificates of deposit. They provide a return while maintaining liquidity. Often used for surplus cash management.
by Small Business Accounting Software | Nov 28, 2025 | Terminologies
A list of all ledger accounts and their balances at a given time. It ensures total debits equal total credits. Used as a preliminary check before preparing financial statements.
by Small Business Accounting Software | Nov 26, 2025 | Terminologies
Shows changes in equity during a period, including investments, withdrawals, and retained earnings. It links the income statement and balance sheet. Useful in sole proprietorships and partnerships.
by Small Business Accounting Software | Nov 25, 2025 | Chart of Accounts, Expenses, Terminologies
Shipping or courier costs for delivering goods to customers. Treated as a selling expense, not part of inventory. Essential for e-commerce and retail operations.
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.
