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.
by Small Business Accounting Software | Oct 22, 2025 | Chart of Accounts, Expenses, Terminologies
Spending on mailing letters, shipping products, or courier services. Often minor but necessary. Essential in businesses reliant on logistics.
by Small Business Accounting Software | Oct 17, 2025 | Assets, Chart of Accounts, Terminologies
When the owner lends money to the business with the intention of repayment, rather than contributing capital. Classified as a liability for the business until paid back. Keeps a distinction between investment and temporary financial support.
by Small Business Accounting Software | Oct 17, 2025 | Chart of Accounts, Expenses, Terminologies
Costs of electricity, water, gas, and internet. Essential for daily operations. Variable depending on usage and seasonality.
by Small Business Accounting Software | Oct 14, 2025 | Chart of Accounts, Terminologies
Earnings from allowing others to use intellectual property like patents, copyrights, or trademarks. Provides passive income streams. Recognized per contract terms.
