by pay@crispino.us | Nov 18, 2025 | Chart of Accounts, Expenses, Terminologies
Unlike corporations, sole proprietors don’t earn a formal salary; they draw money instead. However, some businesses track an “Owner’s Salary” account informally to monitor consistent withdrawals. It always closes out to drawings/capital at year-end.
by pay@crispino.us | Nov 10, 2025 | Chart of Accounts, Expenses, Terminologies
Costs for employee business trips, including airfare, lodging, and meals. Encourages business development and client relationships. Requires careful documentation.
by pay@crispino.us | Oct 26, 2025 | Chart of Accounts, Income, Terminologies
Earnings from owning shares in other companies. Typically recognized when declared. Considered non-operating income for most businesses.
by pay@crispino.us | Oct 23, 2025 | Chart of Accounts, Equity, Terminologies
Cumulative net income not distributed as dividends but reinvested in the business. It grows with profits and shrinks with losses or dividend payments. Critical for long-term financing.
by pay@crispino.us | Oct 20, 2025 | Assets, Chart of Accounts, Terminologies
Purchased or developed computer programs used for operations. Considered an intangible asset, but recorded separately for clarity. May be amortized over its useful life.
by pay@crispino.us | Oct 18, 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.
