by Small Business Accounting Software | Jul 28, 2026 | Terminologies
The estimated value of an asset at the end of its useful life. Used in calculating depreciation. Also called salvage value.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
Requires expenses to be recorded in the same period as the revenues they help generate. This prevents mismatched reporting of costs and income. Essential for accurate net income measurement.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
End-of-period journal entries to update accounts for accruals, deferrals, or estimates. Examples include accrued wages or depreciation. They ensure revenues and expenses match the proper period.
by Small Business Accounting Software | Jul 27, 2026 | Assets, Chart of Accounts, Terminologies
Represents reductions in purchases when goods are returned or discounts are received for defective merchandise. It is a contra-account to Purchases. Provides insights into vendor reliability.
by Small Business Accounting Software | Jul 27, 2026 | Accounting Proram, Terminologies
The process of linking transaction categories to the correct accounts in the general ledger. Many systems automate mapping for common expenses and revenues. Ensures financial data is classified consistently.
by Small Business Accounting Software | Jul 25, 2026 | Chart of Accounts, Terminologies
Income from selling goods or services. It is the primary revenue stream for most companies. Recorded net of returns and discounts.
