by Small Business Accounting Software | Jan 9, 2026 | Chart of Accounts, Terminologies
A category for uncommon obligations not classified elsewhere, such as deferred compensation or contingent liabilities. Used sparingly. Helps avoid clutter in reporting.
by Small Business Accounting Software | Jan 9, 2026 | Chart of Accounts, Expenses, Terminologies
Represents taxes on net income owed to the government. Calculated based on taxable income, not accounting profit. A standard line item on income statements.
by Small Business Accounting Software | Jan 9, 2026 | Terminologies
Also called the Profit and Loss Statement, it summarizes revenues, expenses, and net income over a period. It shows how profitable the business was during that time. Investors and managers use it to assess performance.
by Small Business Accounting Software | Jan 7, 2026 | Chart of Accounts, Terminologies
Taxes accrued but not yet payable due to timing differences between accounting and tax reporting. Often arises from depreciation methods. Recognized as future obligations.
by Small Business Accounting Software | Jan 7, 2026 | Chart of Accounts, Terminologies
In sole proprietorships, this represents the owner’s initial and ongoing contributions. It reflects investment and retained profits. Balances with drawings or withdrawals.
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.
