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.
by Small Business Accounting Software | Nov 3, 2025 | Chart of Accounts, Terminologies
Income earned from performing services rather than selling physical goods. Examples include consulting, rentals, or legal services. Recognized when the service is performed.
by Small Business Accounting Software | Oct 30, 2025 | Terminologies
A direct reduction of tax owed, unlike a deduction which reduces taxable income. Examples include education credits and renewable energy credits. More valuable than deductions dollar-for-dollar.
by Small Business Accounting Software | Oct 28, 2025 | Terminologies
Similar to depreciation but applied to intangible assets like patents, software, or franchise rights. It spreads the cost over the asset’s economic life. Ensures expenses align with benefits.
by Small Business Accounting Software | Oct 24, 2025 | Chart of Accounts, Terminologies
A broader account that reflects the residual interest in the business after liabilities are deducted from assets. It may be used in place of “Owner’s Capital” in simplified setups. Shows the owner’s true claim on the business.
by Small Business Accounting Software | Oct 24, 2025 | Terminologies
A model explaining factors that lead to fraud: pressure, opportunity, and rationalization. Widely used in auditing and forensic accounting. Helps organizations design better controls.
by Small Business Accounting Software | Oct 23, 2025 | Chart of Accounts, Terminologies
Represents amounts owed to government agencies for income, sales, or other taxes. Accurate calculation and timely payment prevent penalties. Reported as current liabilities.
by Small Business Accounting Software | Oct 22, 2025 | Chart of Accounts, Expenses, Terminologies
Spending on mailing letters, shipping products, or courier services. Often minor but necessary. Essential in businesses reliant on logistics.
