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May 5, 2021

What is a Debit and Credit in Accounting?

Most people are familiar with debit and credit outside the context of accounting. We have debit cards and credit cards that allow us to spend money directly from our chec...

November 21, 2014

What are Absorbed Costs?

Do you manufacture a product as part of your business? Then you’re going to need to stay informed on the costs involved in the manufacturing process, if you want your b...

November 12, 2014

What are Arrears in Accounting?

“Your account is in arrears.” What?!?! That can’t be good! What does that mean? Take a deep breath and let’s shed light on what exactly arrears me...

November 12, 2014

What is a Drawing Account?

If you’re doing business as a sole proprietorship or partnership, there will more than likely come a time when you and/or your business partner will want to withdra...

November 3, 2014

What is Working Capital and Why is it Important?

At a high level, working capital is the funds available to your company for use in your day-to-day operations. Without working capital, you wouldn’t be able to stay...

October 28, 2014

Appreciation vs Depreciation

Appreciation and depreciation are fundamental principles to understand for any small business owner. Apprec...

October 24, 2014

What is Cost of Goods Sold?

Every business has a product or service to sell. No matter what it is that you’re selling—or how much you’re selling—you’re going to want to get a h...

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