by Small Business Accounting Software | Aug 12, 2026 | Assets, Chart of Accounts, Terminologies
Goods purchased for resale in retail or merchandising businesses. It is a current asset until sold, after which it moves to Cost of Goods Sold. Proper tracking helps maintain accurate gross profit reporting.
by Small Business Accounting Software | Aug 11, 2026 | Assets, Chart of Accounts, Terminologies
Physical structures owned by the company used for operations. Buildings are depreciated over their useful life. Maintenance is expensed, while improvements are capitalized.
by Small Business Accounting Software | Aug 11, 2026 | Chart of Accounts, Expenses, Terminologies
Costs to develop new products, services, or processes. Often capital-intensive but critical for innovation. May be expensed immediately or amortized depending on regulations.
by Small Business Accounting Software | Aug 11, 2026 | Chart of Accounts, Expenses, Terminologies
Spending on marketing activities such as online ads, print media, or billboards. Helps attract customers and build brand awareness. Considered a discretionary expense.
by Small Business Accounting Software | Aug 10, 2026 | Chart of Accounts, Terminologies
Obligations related to benefits such as health insurance, retirement contributions, or bonuses. Recorded as liabilities until settled. Important for tracking non-wage compensation.
