by Small Business Accounting Software | Jul 2, 2026 | Assets, Chart of Accounts, Terminologies
Interest earned but not yet received in cash. It arises from investments or loans. Recognizing this ensures revenues match the period earned.
by Small Business Accounting Software | Jun 29, 2026 | Chart of Accounts, Terminologies
Used in partnerships to track each partner’s contributions, share of profits, and withdrawals. Ensures fairness and clarity in multi-owner entities. Balances fluctuate as activities occur.
by Small Business Accounting Software | Jun 28, 2026 | Chart of Accounts, Expenses, Terminologies
Donations made to nonprofits or community projects. Considered discretionary but enhances corporate image. Subject to tax rules for deductibility.
by Small Business Accounting Software | Jun 23, 2026 | Chart of Accounts, Expenses, Terminologies
Covers consumables or materials used to deliver services (e.g., cleaning supplies for janitorial work, parts for repair services). Unlike merchandise, they are not resold. Recorded as a direct cost of service delivery.
by Small Business Accounting Software | Jun 15, 2026 | Chart of Accounts, Terminologies
Withdrawals by individual partners for personal use. Reduces that partner’s equity. Recorded separately to monitor distributions.
by Small Business Accounting Software | Jun 13, 2026 | Chart of Accounts, Terminologies
Earnings from owning shares in other companies. Typically recognized when declared. Considered non-operating income for most businesses.
