Accounting Guides & Articles
Browse 91 articles on accounting for small businesses.
What Is a Journal Entry in Accounting? Debits, Credits, and Examples
Journal entries record transactions in your books. Learn double-entry basics, common entry types, and how they flow to financial statements.
What is Accounts Payable? A Simple Guide for small business
Accounts payable tracks money your business owes vendors for goods and services received but not yet paid. Learn AP best practices and controls.
What Is Accounts Receivable Turnover? Formula and Benchmarks
Accounts receivable turnover measures how fast you collect payments. Learn the formula, convert it to days, and apply tactics to speed up collections.
What is Accounts Reconciliation? A Simple Guide for small business
Accounts reconciliation verifies that your ledger matches bank statements, vendor records, and other independent sources to catch errors fast.
What is Accrual Accounting? A Simple Guide for small business
Accrual accounting records revenue when earned and expenses when incurred, giving businesses a clearer picture of profitability than cash basis methods.
What is Accrued Expenses? A Simple Guide for small business
Accrued expenses are costs your business has incurred but not yet paid. Learn how to record them, avoid double-counting, and keep margins honest.
What Is Activity-Based Costing (ABC)? SMB-Friendly Explanation
ABC assigns overhead using activities and drivers—not just one blanket rate. Learn when it helps small businesses and how to keep it simple.
What is Amortization? A Simple Guide for Small Business
Amortization spreads loan payments or intangible asset costs over time. Learn how amortization schedules work and why they matter for small businesses.
What is Balance Sheet? A Simple Guide for Small Business
A balance sheet shows what your business owns, owes, and retains at a specific point in time using the accounting equation Assets = Liabilities + Equity.
What is Bank Reconciliation? A Simple Guide for small business
Bank reconciliation matches your accounting records to your bank statement, catching errors, fraud, and missing entries before they compound over time.
What is Bookkeeping? A Simple Guide for Small Business
Bookkeeping is the daily recording and organizing of business transactions that powers accurate reports, tax filings, and smarter decisions.
What is Capital Expenditure? A Simple Guide for Small Business
Capital expenditure (CapEx) is money spent on long-term assets like equipment and software. Learn how CapEx differs from operating expenses and affects taxes.
What is Cash Flow Statement? A Simple Guide for Small Business
A cash flow statement tracks how cash moves through your business across operating, investing, and financing activities over a specific period.
What is Chart of Accounts? A Simple Guide for small business
A chart of accounts organizes every transaction into numbered categories for reporting and taxes. Learn how to design, number, and maintain yours.
What is Contribution Margin? A Simple Guide for small business
Contribution margin is revenue minus variable costs, showing how much each sale covers fixed expenses. Learn the formula, ratio, and how to use it for pricing.
What is Cost Accounting? A Simple Guide for small business
Cost accounting measures and assigns costs to products, services, and projects so you can price accurately and find where profit is made or lost.
What is Cost of Revenue? A Simple Guide for small business
Cost of revenue is the direct cost of delivering your product or service. Learn what to include, how it differs from operating expenses, and more.
What Is the Debt-to-Equity Ratio? Leverage for small business
The debt-to-equity ratio compares liabilities to owner equity. Learn the formula, how lenders evaluate leverage, and what healthy ratios look like.
What is Deferred Revenue? A Simple Guide for small business
Deferred revenue is cash collected before you deliver the product or service. Learn how to record it, release it over time, and avoid common mistakes.
What is Earnings Before Interest and Taxes? A Simple Guide for Small Business
EBIT measures operating profitability before financing costs and taxes. Learn the formula, how it compares to EBITDA, and when to use it for decisions.
What is Equity in Business? A Simple Guide for small business
Business equity is the owner’s stake after subtracting liabilities from assets. Learn how equity changes with profits, draws, and contributions.
What is Financial Ratio Analysis? A Simple Guide for Small Business
Financial ratio analysis compares key numbers from your financial statements to reveal profitability, liquidity, and efficiency trends for better decisions.
What is Fiscal Year? A Simple Guide for Small Business
A fiscal year is the 12-month accounting period your business uses for reporting and taxes. Learn how to choose one and run a clean year-end close.
What is Free Cash Flow? A Simple Guide for Small Business
Free cash flow is operating cash minus capital expenditures, showing what money is truly available for owners, debt payments, and growth investments.
What is Goodwill in Accounting? A Simple Guide for Small Business
Goodwill is the premium paid above net asset value when acquiring a business. Learn how it is recorded, tested for impairment, and why it matters in deals.
What is Gross Profit? A Simple Guide for small business
Gross profit is revenue minus the direct costs of delivering your product or service. Learn the formula, why it matters, and how to improve margins.
What Is Inventory Turnover Ratio? Retail and Product Business Guide
Inventory turnover ratio shows how often you sell through stock. Learn the COGS-based formula, industry benchmarks, and practical ways to improve turns.
What is Marginal Cost? A Simple Guide for Small Business
Marginal cost is the additional expense of producing one more unit or taking one more job. Learn how to estimate it and set effective price floors.
What is Net Income? A Simple Guide for small business
“Net income is your bottom-line profit after all expenses, interest, and taxes. Learn how to calculate it, why it differs from cash, and common pitfalls.”
What Is Operating Margin? Meaning, Formula, and How to Improve It
Operating margin shows profit from core operations before interest and taxes. Learn how to calculate it and what drives margin for SMBs.
What is Opportunity Cost? A Simple Guide for Small Business
Opportunity cost is the value of the next-best alternative you forgo when choosing one use of time, money, or attention. Learn how to apply it to pricing.
What is Overhead Cost? A Simple Guide for small business
Overhead costs are ongoing expenses not tied to a single product or service. Learn how to classify, allocate, and control them to protect your margins.
What is Profit and Loss Statement? A Simple Guide for Small Business
A profit and loss statement summarizes revenue, expenses, and net income over a period. Learn how to read a P&L and spot problems in your business.
What Is Return on Investment (ROI)? Formula, Uses, and Limits
ROI measures gain versus cost for investments and campaigns. Learn the basic formula, time adjustments, and when ROI misleads small businesses.
What is Revenue Recognition? A Simple Guide for Small Business
Revenue recognition determines when earned income appears on your financial statements. Learn the five-step model and common small business scenarios.
What is Sunk Cost? A Simple Guide for Small Business
A sunk cost is money already spent that cannot be recovered. Learn how the sunk cost fallacy affects business decisions and how to avoid it.
What Is the Accounting Cycle? Steps From Transaction to Statements
The accounting cycle turns daily transactions into financial statements. See each step, who owns it, and how it supports SMB compliance.
What Is Variance Analysis? Budget vs. Actual for small business
Variance analysis compares planned numbers to actual results. Learn key variances, causes, and how owners use them without drowning in spreadsheets.
What is Working Capital? A Simple Guide for small business
Working capital is current assets minus current liabilities. Learn the formula, key ratios, and practical ways to improve your short-term liquidity.
What Is Zero-Based Budgeting? ZBB for small business Owners
Zero-based budgeting justifies every expense from scratch each period instead of tweaking last year. Learn a lightweight ZBB process built for small teams.
How to Manage Cash Flow for Your Small Business
Learn how to manage cash flow for your small business with practical strategies for forecasting, invoice timing, and building financial reserves.
What Is Accounts Receivable? A small business Guide
Learn what accounts receivable is, how the AR process works, how to read aging reports, and best practices for collecting payments faster.
What is double-entry bookkeeping? A Detailed Review
Double-entry bookkeeping records every transaction as a debit and credit, keeping your books balanced and enabling accurate financial statements.
What is Direct Labor Cost? How to Calculate It?
Direct labor cost includes wages, benefits, and payroll taxes for workers who build your product. Learn how to calculate and control it.
What is Cash Flow? A Detailed Review
Cash flow measures the money entering and leaving your business over a period. Learn how to calculate, forecast, and improve it for long-term stability.
What Is an Inventory System? Benefits, and Key Functions
An inventory system tracks and manages physical goods and assets throughout your business. Learn the key benefits, functions, and common inventory methods.
Types of Expense Reports
Learn about the main types of expense reports, their purpose, common categories, and examples of how businesses manage expense claims efficiently.
What Is an Accounting Audit? A Complete Guide
An accounting audit verifies that financial statements are accurate and comply with regulations. Learn the types, process, and how to prepare for one.
What Is a Trial Balance? Everything You Need to Know
A trial balance lists all account balances to verify that total debits equal total credits. Learn the three types, formula, and steps to create one.
What are liabilities in accounting? A Complete Guide
Liabilities in accounting include all debts, equity, and provisions shown on the right side of the balance sheet. Learn the types and how to record them.
What is a General Ledger? Simply Explained
A general ledger organizes every transaction into categorized accounts. Learn how it connects to journals, subsidiary ledgers, and financial statements.
What Is a Business Claim? A Simple Guide
A business claim is an amount owed to your company for services or goods delivered. Learn how to track receivables and prevent unpaid invoices.
What Is a Cash Flow Gap? 4 Smart Tips to Fix It Fast
A cash flow gap occurs when expenses exceed available cash from collected revenue. Learn four practical strategies to close the gap quickly.
What Causes Dividends Per Share to Decrease?
Dividends per share can decrease when companies reinvest profits, reduce debt, or face earnings declines. Learn the key causes and what they signal.
What are the different types of accounting?
Discover the different types of accounting, from general and cost accounting to management and tax accounting, and learn when each type applies.
What Is Liquidity? Your Simple Guide to the Quick Ratio
Liquidity measures how quickly assets convert to cash. Learn the current ratio, quick ratio, and cash ratio formulas with worked examples for each.
How to Calculate Profit Margin: Formulas, Examples, and Benchmarks
Learn how to calculate profit margin for your business with clear formulas, real examples, and industry benchmarks for gross and net margins.
What is Debt Ratio: How to Calculate it?
The debt ratio measures how much of a company's assets are financed by debt. Learn the formula, interpretation benchmarks, and types of debt ratios.
Understanding Debit and Credit in Accounting: Key Differences
Debit and credit are the foundation of double-entry bookkeeping. Learn what each means, how they differ, and how every transaction uses both.
Understanding Budget, Functions, and How to Create It for Business
A budget estimates income and expenses for a set period to guide spending decisions. Learn its functions and how to create one for your business.
Small Business Financial Statements Explained
Understand the three key small business financial statements — income statement, balance sheet, and cash flow statement — and how to read them.
Step-by-Step Guide to Account Payable Aging Report for Businesses
An accounts payable aging report groups your outstanding supplier debts by how long they have been due. Learn the key components and how to prepare one.
Sales indicators: what are they for?
Sales indicators track conversion rates, average basket size, and revenue trends so retailers can make data-driven decisions about promotions and pricing.
Return on Sales: Everything you need to know
Return on sales measures what percentage of revenue remains after covering operating costs. Learn how to calculate and improve your ROS ratio.
Indirect Labor Cost: How to Calculate It
Indirect labor costs cover wages for roles that support production without directly making products. Learn how to calculate and allocate these costs.
How to use credit ratio analysis
Credit ratio analysis evaluates financial health using debt, liquidity, profitability, and interest coverage metrics. Learn how to apply each one.
How to Simplify Your Invoicing Process? A Simple Guide
Simplify your invoicing process with smart strategies and tools. Learn how to create accurate invoices, get paid faster, and reduce accounting errors.
How to Make an Accounting Report: A Simple Guide
An accounting report summarizes income and expenditures for a set period. Learn how to create one for clubs, associations, and small organizations.
Stop Accounting Mistakes in Their Tracks: 8 Tips
Avoid costly accounting mistakes with these eight practical tips covering delegation, auditing, software tools, and proper record-keeping practices.
6 Steps to Close Your Accounting Year
Learn the six essential steps to close your accounting year correctly, from reconciling accounts to preparing and filing financial statements.
How to Calculate the Break-Even Point?
The break-even point is where total revenue equals total costs, resulting in zero profit or loss. Learn the formula and how to calculate it step by step.
How to Calculate Production Costs: Definition, Types, and Examples
Production costs include materials, labor, and overhead needed to create goods or services. Learn the types, formulas, and how to calculate them.
How to Calculate Operating Income? A Complete Guide
Operating income measures earnings from core business activities before taxes and interest. Learn the formula, income types, and calculation examples.
How do tangible fixed assets work in accounting?
Tangible fixed assets are physical resources like buildings, machinery, and vehicles used beyond one fiscal year. Learn how to record and depreciate them.
Fixed costs and variable costs: definitions and examples
Fixed costs stay constant regardless of output while variable costs change with production volume. Learn how to identify, calculate, and manage both.
Fixed assets vs. Current assets: what are the differences?
Fixed assets are long-term resources like buildings and machinery, while current assets include cash and inventory. Learn the key differences.
Financial Reports: What They Are and How to Use Them
Financial reports summarize a company's performance over a quarter or year. Learn what they include, how to read them, and why they matter for decisions.
Expense Account in Business: A Beginner’s Guide
Expense accounts classify business spending by type and purpose. Learn common account headings, how to create your own, and best practices for tracking.
Consolidated vs. Separate Financial Statements
Consolidated financial statements combine parent and subsidiary data into one report. Learn how they differ from separate statements and when each is used.
Bad Debt in Business: Causes, Impact & Prevention
Bad debt occurs when clients fail to pay what they owe, straining cash flow and profitability. Learn the common causes, impacts, and prevention strategies.
Account Based Marketing (ABM): A Guide for B2B
Account Based Marketing targets high-value accounts with personalized campaigns. Learn how to implement ABM for your B2B business on a budget.
Accounting Provision: A Simple Guide
An accounting provision is a probable but uncertain liability recorded under the prudence principle. Learn how provisions affect your balance sheet.
What Is an Expense Report?
An expense report compiles all business expenses an employee incurs during a specific period or task. Learn what to include and why they matter.
What Is An Accounts Receivable Aging Report?
An accounts receivable aging report groups unpaid invoices by how long they have been outstanding, helping you spot collection issues early.
Sample Balance Sheet and Income Statement for Small Business
See sample balance sheet and income statement formats for small businesses, with clear examples showing how assets, liabilities, and equity connect.
How to Calculate Depreciation?
Learn how to calculate depreciation using straight-line, declining balance, and units-of-production methods with formulas and real examples.
What are net sales? How to calculate them
Net sales equal total sales minus returns, allowances, and discounts. Learn the formula and see step-by-step calculation examples for your business.
How to Calculate Manufacturing Overhead Costs?
Calculate manufacturing overhead costs by dividing overhead by labor costs. Learn the formula, cost types, and how to allocate overhead per unit.
How Much Money Can You Deposit Before it is Reported?
Banks automatically report cash deposits of $10,000 or more to the IRS under the Bank Secrecy Act. Learn the rules for businesses and individuals.
How Retained Earnings Are Calculated?
Retained earnings equal prior retained earnings plus net income minus dividends paid. Learn the formula, methods, and where they appear on reports.
What Is Cost of Goods Sold (COGS) and How to Calculate It?
The cost of goods sold is calculated by adding purchases for the time to the starting inventory and minus the ending inventory for the period