by Small Business Accounting Software | Sep 26, 2025 | Chart of Accounts, Expenses, Terminologies
Costs for memberships, professional subscriptions, or publications. Helps employees stay informed or connected. Usually minor but useful.
by Small Business Accounting Software | Sep 23, 2025 | Assets, Chart of Accounts, Terminologies
Represents the cost of real estate owned by the business. Unlike other assets, land is not depreciated because it does not wear out. It retains or increases value over time.
by Small Business Accounting Software | Sep 17, 2025 | Chart of Accounts, Expenses, Terminologies
Reductions in sales prices given to customers, usually for early payment or promotions. Recorded separately from gross sales to show net sales. Useful for analyzing pricing strategies.
by Small Business Accounting Software | Sep 16, 2025 | Assets, Chart of Accounts, Terminologies
Costs incurred for projects still under development, such as a building not yet finished. This account accumulates expenses until the asset is ready for use. Once complete, the balance is transferred to a fixed asset category.
by Small Business Accounting Software | Sep 14, 2025 | Chart of Accounts, Terminologies
Declared dividends owed to shareholders but not yet distributed. Once declared, they are an obligation until paid. They reduce retained earnings.
by Small Business Accounting Software | Sep 13, 2025 | Chart of Accounts, Expenses, Terminologies
Tracks personal expenses mistakenly or intentionally paid from business funds (e.g., personal groceries, vacations). In accounting, these are recorded separately for clarity, then reclassified as Owner’s Drawings. Ensures accurate tax reporting.
