by Small Business Accounting Software | Aug 19, 2026 | Assets, Chart of Accounts, Terminologies
A temporary account used to track goods bought for resale. At the end of the period, it adjusts into inventory and COGS. Helps monitor supplier activity and inventory turnover.
by Small Business Accounting Software | Aug 19, 2026 | Chart of Accounts, Terminologies
Tracks gains and losses not included in net income, such as foreign currency adjustments or unrealized securities gains. Appears in equity section. Reflects broader changes in net worth.
by Small Business Accounting Software | Aug 16, 2026 | Chart of Accounts, Expenses, Terminologies
Spending on workshops, courses, or seminars for employees. Enhances skills and productivity. Considered an investment in human capital.
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.
