by Small Business Accounting Software | Mar 13, 2026 | Chart of Accounts, Expenses, Terminologies
Premiums paid for various insurance policies such as health, liability, or property. Recognized over the coverage period. Provides risk protection.
by Small Business Accounting Software | Feb 26, 2026 | Chart of Accounts, Expenses, Terminologies
Compensation paid to employees for their services. Usually the largest operating expense for many businesses. Includes base pay but excludes benefits.
by Small Business Accounting Software | Feb 21, 2026 | Chart of Accounts, Expenses, Terminologies
Similar to depreciation but applied to intangible assets like patents or software. It spreads cost over the asset’s useful life. Ensures compliance with accrual accounting.
by Small Business Accounting Software | Feb 18, 2026 | Chart of Accounts, Expenses, Terminologies
Covers non-salary compensation such as healthcare, retirement contributions, and allowances. Enhances employee satisfaction. Often a major labor-related expense.
by Small Business Accounting Software | Jan 30, 2026 | Chart of Accounts, Expenses, Terminologies
Unlike corporations, sole proprietors don’t earn a formal salary; they draw money instead. However, some businesses track an “Owner’s Salary” account informally to monitor consistent withdrawals. It always closes out to drawings/capital at year-end.
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.
