by Small Business Accounting Software | Oct 13, 2025 | Terminologies
The study of differences between actual results and budgeted or standard figures. Identifies areas requiring attention or improvement. A vital managerial accounting tool.
by Small Business Accounting Software | Oct 10, 2025 | Chart of Accounts, Expenses, Terminologies
The cost of items like pens, paper, and printer cartridges consumed during operations. Recorded when used, not purchased if immaterial. Distinct from inventory.
by Small Business Accounting Software | Oct 7, 2025 | Terminologies
The master set of accounts that consolidates all financial transactions of a business. It contains both balance sheet and income statement accounts. The G/L is the backbone of financial reporting.
by Small Business Accounting Software | Oct 5, 2025 | Chart of Accounts, Terminologies
Estimated costs associated with product warranties. Recorded when sales occur, based on historical data. It reflects obligations to repair or replace defective products.
by Small Business Accounting Software | Oct 2, 2025 | Chart of Accounts, Terminologies
Revenue from long-term service agreements, such as annual maintenance or IT support. Recognized gradually as services are performed. Provides a stable income stream.
by Small Business Accounting Software | Oct 2, 2025 | Terminologies
The process of recording day-to-day financial transactions, such as sales, purchases, receipts, and payments. It is a subset of accounting that focuses on data entry and accuracy. Proper bookkeeping ensures reliable data for financial reports.
