by Small Business Accounting Software | Oct 13, 2025 | Terminologies
The study of differences between actual results and budgeted or standard figures. Identifies areas requiring attention or improvement. A vital managerial accounting tool.
by Small Business Accounting Software | Oct 10, 2025 | Chart of Accounts, Expenses, Terminologies
The cost of items like pens, paper, and printer cartridges consumed during operations. Recorded when used, not purchased if immaterial. Distinct from inventory.
by Small Business Accounting Software | Oct 7, 2025 | Terminologies
The master set of accounts that consolidates all financial transactions of a business. It contains both balance sheet and income statement accounts. The G/L is the backbone of financial reporting.
by Small Business Accounting Software | Oct 5, 2025 | Chart of Accounts, Terminologies
Estimated costs associated with product warranties. Recorded when sales occur, based on historical data. It reflects obligations to repair or replace defective products.
by Small Business Accounting Software | Oct 2, 2025 | Chart of Accounts, Terminologies
Revenue from long-term service agreements, such as annual maintenance or IT support. Recognized gradually as services are performed. Provides a stable income stream.
by Small Business Accounting Software | Oct 2, 2025 | Terminologies
The process of recording day-to-day financial transactions, such as sales, purchases, receipts, and payments. It is a subset of accounting that focuses on data entry and accuracy. Proper bookkeeping ensures reliable data for financial reports.
by Small Business Accounting Software | Sep 30, 2025 | Accounting Proram, Terminologies
A document issued to correct or reduce an existing invoice, such as when goods are returned or an error is found. The software applies credit notes against outstanding balances. Helps maintain accurate receivables.
by Small Business Accounting Software | Sep 27, 2025 | Chart of Accounts, Terminologies
Company’s own shares that were repurchased from shareholders. It reduces equity since these shares are no longer outstanding. Often used for stock compensation or market stabilization.
by Small Business Accounting Software | Sep 27, 2025 | Chart of Accounts, Terminologies
Represents amounts investors pay above par value when purchasing stock. It reflects extra equity contributions. Often arises in public offerings.
by Small Business Accounting Software | Sep 26, 2025 | Terminologies
A financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It provides a snapshot of financial health and solvency. The balance sheet answers, “What do we own, and how is it financed?”
by Small Business Accounting Software | Sep 26, 2025 | Chart of Accounts, Terminologies
Earnings from investments, bank deposits, or loans. Provides passive income outside main operations. Recorded when earned, not necessarily received.
by Small Business Accounting Software | Sep 26, 2025 | Chart of Accounts, Expenses, Terminologies
Costs for memberships, professional subscriptions, or publications. Helps employees stay informed or connected. Usually minor but useful.
