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.
