by Small Business Accounting Software | May 27, 2026 | Chart of Accounts, Terminologies
Cumulative net income not distributed as dividends but reinvested in the business. It grows with profits and shrinks with losses or dividend payments. Critical for long-term financing.
by Small Business Accounting Software | May 25, 2026 | Chart of Accounts, Terminologies
Potential obligations that depend on future events, such as lawsuits or guarantees. Recorded if probable and estimable. Disclosed in notes if uncertain.
by Small Business Accounting Software | May 25, 2026 | Terminologies
A profitability ratio that shows how effectively assets generate net income. Calculated as Net Income ÷ Total Assets. Indicates efficiency in using resources.
by Small Business Accounting Software | May 22, 2026 | Chart of Accounts, Expenses, Terminologies
Covers landline, mobile, and data communication costs. Increasingly includes VoIP and internet-based communications. Supports day-to-day operations.
by Small Business Accounting Software | May 21, 2026 | Chart of Accounts, Terminologies
Formal written promises to pay lenders, often with interest, within a set timeframe. They may be short-term or long-term depending on maturity. Notes provide structured financing.
