by Small Business Accounting Software | Jun 15, 2026 | Chart of Accounts, Terminologies
Withdrawals by individual partners for personal use. Reduces that partner’s equity. Recorded separately to monitor distributions.
by Small Business Accounting Software | Jun 13, 2026 | Chart of Accounts, Terminologies
Earnings from owning shares in other companies. Typically recognized when declared. Considered non-operating income for most businesses.
by Small Business Accounting Software | Jun 10, 2026 | Chart of Accounts, Terminologies
Sometimes used to track running balances of contributions, withdrawals, and allocations for ease of monitoring. It provides a clear view of how much the owner has taken out or put in during a period. At year-end, balances typically roll into the capital account.
by Small Business Accounting Software | Jun 9, 2026 | Chart of Accounts, Expenses, Terminologies
Payments to outside contractors or freelancers who provide part of a contracted service. Common in construction, design, and professional services. Considered a direct operating expense.
by Small Business Accounting Software | Jun 3, 2026 | Assets, Chart of Accounts, Terminologies
Office desks, chairs, cabinets, and fixtures used in daily operations. Like equipment, they are depreciated. They support operational efficiency.
by Small Business Accounting Software | May 28, 2026 | Assets, Chart of Accounts, Terminologies
Non-physical assets like patents, trademarks, copyrights, and goodwill. They provide future economic benefits but lack physical substance. They are amortized rather than depreciated.
