#bookkeeping
Bookkeeping
Modern bookkeeping techniques using plain-text and automated workflows
Section 174 R&D Expensing in 2026: How Software Startups Recover From the TCJA Capitalization Trap
OBBBA's new Section 174A restores immediate expensing for domestic R&D in tax years after December 31, 2024, and qualifying small businesses can amend 2022–2024 returns by July 6, 2026 to recover overpaid tax. A guide to the three coexisting Section 174 regimes, the Section 41 credit add-back, foreign 15-year amortization, and the statement in lieu of Form 3115.
Section 274(n) Meals and Entertainment After TCJA: 100, 50, and Zero-Percent Categories, and the 2026 Section 274(o) Cliff
A working guide to Section 274's four meal deduction rates—100%, 80%, 50%, and zero—and the 2026 Section 274(o) cliff that ended the employer deduction for breakroom snacks, catered office lunches, and convenience-of-employer meals.
Section 471(c) Inventory Exception: The $32M Rule That Lets Small Businesses Skip UNICAP
For tax year 2026, businesses with a three-year average of gross receipts at or below $32 million can elect Section 471(c) to skip UNICAP, treat inventory as non-incidental materials and supplies, and file Form 3115 — often producing a one-time Section 481(a) deduction in the year of change.
Segregation of Duties With Three Employees: Preventing Embezzlement at Small Businesses
The median fraud at a company with fewer than 100 employees costs $141,000. This guide explains how to apply segregation of duties — separating authorization, custody, recordkeeping, and reconciliation — and use compensating controls when you have only three employees.
Subchapter T Patronage Dividends Explained: How Co-ops Avoid Double Tax, Issue Qualified and Nonqualified Written Notices of Allocation, and Report Member Distributions on Form 1099-PATR
How Subchapter T lets U.S. cooperatives deduct patronage dividends and avoid corporate double tax — covering the 20% cash floor for qualified written notices of allocation, the post-2017 shift toward nonqualified treatment, per-unit retains, Form 1099-PATR box-by-box reporting, Section 199A(g) for specified ag co-ops, and the recordkeeping that turns a deduction into a defensible one.
The 13-Week Cash Flow Forecast: A Survival Guide for Small Business Liquidity
A 13-week cash flow forecast uses the direct method to project weekly cash movement across one quarter, surfacing the exact day a profitable business could still bounce payroll. Here is how to build, read, and roll one forward.
Allowance for Doubtful Accounts: Keep Accounts Receivable Honest
The allowance for doubtful accounts estimates how much of your receivables won't be collected. This guide covers the percentage-of-sales and aging methods, the three journal entries, and the mistakes that distort financial statements.
Bank Reconciliation Done Right: The Monthly Process That Catches Errors and Fraud Early
A monthly bank reconciliation done in 30 to 90 minutes is the cheapest fraud control a small business has. This guide walks through the two-column worksheet, how to handle outstanding checks and deposits in transit, the recurring items that trip people up, and the internal controls that turn the exercise into real protection.
Break-Even Analysis and Contribution Margin: The Formula Every Small Business Should Run Monthly
A working guide to break-even analysis covering the contribution margin formula, multi-product weighted approach, margin of safety thresholds, and four pricing scenarios — with a candle-maker example showing why a 10% price cut can erase 25% of unit profit.
How to Design a Chart of Accounts That Tells You Something
A bloated chart of accounts with 200 entries hides profit instead of revealing it. Most small businesses need 30 to 60 accounts, numbered in family blocks with gaps, with COGS separated from operating expenses and departments tracked as dimensions rather than duplicated accounts.
Designing a Chart of Accounts That Actually Tells You Something
A practical guide to designing a chart of accounts that produces useful financial statements — how to number accounts in increments of 10, when to use sub-accounts versus dimensions for locations and departments, and the year-end cleanup ritual that prevents bloat.
Constructive Receipt and the December 31 Check: Why 'I Didn't Cash It' Won't Save You at Tax Time
A practical guide to the constructive receipt doctrine under Treasury Reg. 1.451-2 — what counts as income in the year you got the check, what doesn't, and which year-end deferral moves actually survive an audit.