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.
by Small Business Accounting Software | Oct 22, 2025 | Terminologies
Requires a business to use the same accounting methods from period to period. This allows for comparability across time. Any changes must be disclosed and justified.
by Small Business Accounting Software | Oct 21, 2025 | Terminologies
A ratio that shows how many times a company sells and replaces its inventory during a period. High turnover indicates efficiency, while low turnover may signal overstocking. Critical in retail and merchandising businesses.
by Small Business Accounting Software | Oct 17, 2025 | Assets, Chart of Accounts, Terminologies
When the owner lends money to the business with the intention of repayment, rather than contributing capital. Classified as a liability for the business until paid back. Keeps a distinction between investment and temporary financial support.
