by Small Business Accounting Software | Apr 22, 2026 | Assets, Chart of Accounts, Terminologies
Purchased or developed computer programs used for operations. Considered an intangible asset, but recorded separately for clarity. May be amortized over its useful life.
by Small Business Accounting Software | Apr 22, 2026 | Chart of Accounts, Expenses, Terminologies
Represents reductions in sales revenue due to returned goods or price concessions. A contra-expense account that offsets revenues. Important for tracking customer satisfaction and product quality issues.
by Small Business Accounting Software | Apr 19, 2026 | Chart of Accounts, Terminologies
Supplemental income from business activities outside the core product or service but still operational, such as parking fees at a hotel. Enhances profitability. Reported separately for transparency.
by Small Business Accounting Software | Apr 18, 2026 | Chart of Accounts, Expenses, Terminologies
The systematic allocation of an asset’s cost over its useful life. Reflects wear, tear, and obsolescence. Recorded periodically to match expense with revenue.
by Small Business Accounting Software | Apr 7, 2026 | Chart of Accounts, Terminologies
Withdrawals made by the owner for personal use. It reduces the owner’s equity. Common in sole proprietorships or partnerships.
by Small Business Accounting Software | Apr 6, 2026 | Chart of Accounts, Expenses, Terminologies
Direct costs of producing goods sold, including materials and labor. It directly impacts gross profit. Accurate calculation is essential for pricing and profitability analysis.
