Versus

Xero and Wave are among the most popular accounting software brands in today’s industry. In our Xero vs Wave comparison, Xero takes the win because it has inexpensive paid plans, unlimited users, and a diverse set of features that range from simple to advanced accounting. However, Wave’s free plan, Starter, can be a go-to pick…

The key difference between accounts payable vs accrued expenses lies in when they are incurred. Both are current liabilities, but they arise under different circumstances and are accounted for in distinct ways. Accrued expenses involve estimated costs that have been incurred but not yet paid Accounts payable (A/P) represent documented liabilities arising from invoices received…

Depreciation is a fundamental concept that allows businesses to allocate the cost of long-term assets over their useful lives. While accumulated depreciation reflects the total depreciation recognized over the life of an asset, depreciation expense provides a snapshot of the current period’s allocation of the asset’s cost as an operating expense. In other words, depreciation…

It’s easy to confuse a sales order (SO) with a purchase order (PO). While these two may have the same information, the PO always comes from the buyer as it’s a formal document requesting a supplier to provide the goods to the buyer. Meanwhile, the SO always comes from the seller, given it’s a formal…