by Small Business Accounting Software | Aug 13, 2026 | Terminologies
The systematic process of recording, classifying, and summarizing financial transactions to provide useful information for decision-making. It ensures business activities are captured accurately and consistently. Accounting forms the foundation for financial reporting...
by Small Business Accounting Software | Aug 13, 2026 | Chart of Accounts, Terminologies
Profit realized when selling fixed assets at a price higher than book value. It is recorded as income separate from regular sales. Helps reflect capital gains in operations.
by Small Business Accounting Software | Aug 13, 2026 | Chart of Accounts, Terminologies
Tracks additional funds or assets contributed by the owner during the business’s operation (beyond initial capital). It highlights the reinvestment made by the owner to support growth. This account feeds into Owner’s Capital.
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.
