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 30, 2025 | Terminologies
A direct reduction of tax owed, unlike a deduction which reduces taxable income. Examples include education credits and renewable energy credits. More valuable than deductions dollar-for-dollar.
by Small Business Accounting Software | Oct 28, 2025 | Terminologies
Similar to depreciation but applied to intangible assets like patents, software, or franchise rights. It spreads the cost over the asset’s economic life. Ensures expenses align with benefits.
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 24, 2025 | Terminologies
A model explaining factors that lead to fraud: pressure, opportunity, and rationalization. Widely used in auditing and forensic accounting. Helps organizations design better controls.
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.
