The world of accounting is indeed full of terms and concepts. This may also be the reason why a lot of business owners often do not like taking accounting into their own hands. Thanks to accountants, they can rely on somebody else to do the math and recording for them.

Among these terms are interest expense and interest payable.

Interest Expense, on the one hand, is an income statement account whose primary purpose is to report the amount of interest that had been incurred by the company’s debt within a given period of time. Basically, this relates to the cost of having to borrow money. Furthermore, it is the price that a lender will charge a company for borrowing a certain amount of money.

On the other hand, Interest Payable refers to the amount which a company has to pay in the form of interest on its cash borrowings. In other words, it is a current liability account that is being used to report the amount of interest that had been incurred or acquired by a business but has not been paid yet as of the balance sheet’s date.

In order for your business to be better able to monitor these two types of interests, then, you should use accounting software for small business wherein you can get to enter data and then let the software do the rest. With such accounting software for small business, you are assured to be reminded of all these amounts that the company has to pay.

When looking for the best provider of your small business accounting software, consider the services of Shoebooks. It is the most reputable online accounting software provider in Australia. Check out its website at www.shoebooks.com.au and be informed of the different modules and packages that are customizable to suit your business’ every unique and individual need.


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