by Small Business Accounting Software | Dec 1, 2025 | Terminologies
Measures how effectively a company generates profit from shareholders’ investments. Calculated as Net Income ÷ Shareholders’ Equity. A key metric for investors.
by Small Business Accounting Software | Nov 30, 2025 | Assets, Chart of Accounts, Terminologies
Highly liquid investments intended to be held for less than a year, such as treasury bills or certificates of deposit. They provide a return while maintaining liquidity. Often used for surplus cash management.
by Small Business Accounting Software | Nov 28, 2025 | Terminologies
A list of all ledger accounts and their balances at a given time. It ensures total debits equal total credits. Used as a preliminary check before preparing financial statements.
by Small Business Accounting Software | Nov 26, 2025 | Terminologies
Shows changes in equity during a period, including investments, withdrawals, and retained earnings. It links the income statement and balance sheet. Useful in sole proprietorships and partnerships.
by Small Business Accounting Software | Nov 25, 2025 | Chart of Accounts, Expenses, Terminologies
Shipping or courier costs for delivering goods to customers. Treated as a selling expense, not part of inventory. Essential for e-commerce and retail operations.
by Small Business Accounting Software | Nov 22, 2025 | Chart of Accounts, Terminologies
A long-term liability secured by real property. Payments typically include both principal and interest. Often broken into current and long-term portions.
