by pay@crispino.us | Sep 14, 2026 | 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 | Sep 2, 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 pay@crispino.us | Sep 1, 2026 | Chart of Accounts, Liabilities, Terminologies
Expenses incurred but not yet paid, such as wages, utilities, or taxes. They ensure liabilities are recorded when incurred, not just when paid. This maintains accrual-based accuracy. by pay@crispino.us | Aug 20, 2026 | Chart of Accounts, Expenses, Terminologies
Covers fuel, repairs, and upkeep of company-owned vehicles. Essential for logistics and transportation-heavy businesses. Requires mileage tracking for compliance. by pay@crispino.us | Aug 18, 2026 | Chart of Accounts, Expenses, Terminologies
Spending on meals, events, or hospitality to build client relationships. Subject to regulatory and tax restrictions. Needs proper documentation for deductions. by pay@crispino.us | Aug 16, 2026 | Chart of Accounts, Income, Terminologies
Income from selling goods or services. It is the primary revenue stream for most companies. Recorded net of returns and discounts.