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.
by Small Business Accounting Software | Apr 6, 2026 | Chart of Accounts, Expenses, Terminologies
Covers legal advice, representation, and filing fees. Critical for risk management. May spike during disputes or acquisitions.
by Small Business Accounting Software | Mar 30, 2026 | Assets, Chart of Accounts, Terminologies
Machinery, computers, and other tangible assets used in operations. Equipment is depreciated over its lifespan. Proper categorization distinguishes it from supplies.
by Small Business Accounting Software | Mar 28, 2026 | Chart of Accounts, Terminologies
Revenue from leasing company-owned property or equipment. Can be steady recurring income. Recognized when rent is due.
by Small Business Accounting Software | Mar 27, 2026 | Chart of Accounts, Terminologies
Income earned from providing professional advice or specialized services. Recognized when the service is rendered. Common for service-based businesses like law, IT, and accounting.
