by Small Business Accounting Software | Apr 12, 2026 | Accounting Proram, Terminologies
A system that grants permissions based on user roles rather than individual settings. For example, managers may approve transactions while clerks only enter data. Simplifies administration and strengthens security.
by Small Business Accounting Software | Apr 11, 2026 | Terminologies
Guides accountants to anticipate losses but not gains, meaning potential expenses and liabilities are recognized promptly while revenues are only recorded when certain. Ensures financial statements are not overly optimistic.
by Small Business Accounting Software | Apr 7, 2026 | Chart of Accounts, Terminologies
Withdrawals made by the owner for personal use. It reduces the owner’s equity. Common in sole proprietorships or partnerships.
by Small Business Accounting Software | Apr 7, 2026 | Terminologies
Supporting documents accountants prepare during audits or reporting. They include schedules, reconciliations, and analysis used to verify accounts. Provide evidence and reference for conclusions.
by Small Business Accounting Software | Apr 7, 2026 | Terminologies
States that assets should be recorded at their original purchase price, not market value. Provides objectivity and verifiability. Though simple, it may understate asset values in inflationary times.
