by Small Business Accounting Software | Nov 15, 2025 | Assets, Chart of Accounts, Terminologies
Represents money available in currency and bank accounts. This account reflects the most liquid asset that a business can immediately use to settle obligations or invest. It is constantly updated as deposits and withdrawals occur.
by Small Business Accounting Software | Nov 14, 2025 | Chart of Accounts, Terminologies
Money received before goods or services are delivered. It is a liability until the company fulfills its obligation. Examples include advance payments for subscriptions or bookings.
by Small Business Accounting Software | Nov 10, 2025 | Chart of Accounts, Terminologies
Earnings from facilitating sales or services on behalf of others, such as real estate agents or brokers. Typically a percentage of transaction value. Recorded when earned.
by Small Business Accounting Software | Nov 3, 2025 | Chart of Accounts, Terminologies
Income earned from performing services rather than selling physical goods. Examples include consulting, rentals, or legal services. Recognized when the service is performed.
by Small Business Accounting Software | Oct 24, 2025 | Chart of Accounts, Terminologies
A broader account that reflects the residual interest in the business after liabilities are deducted from assets. It may be used in place of “Owner’s Capital” in simplified setups. Shows the owner’s true claim on the business.
by Small Business Accounting Software | Oct 23, 2025 | Chart of Accounts, Terminologies
Represents amounts owed to government agencies for income, sales, or other taxes. Accurate calculation and timely payment prevent penalties. Reported as current liabilities.
