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 22, 2025 | Terminologies
Requires a business to use the same accounting methods from period to period. This allows for comparability across time. Any changes must be disclosed and justified.
by Small Business Accounting Software | Oct 21, 2025 | Terminologies
A ratio that shows how many times a company sells and replaces its inventory during a period. High turnover indicates efficiency, while low turnover may signal overstocking. Critical in retail and merchandising businesses.
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.
