#small-business
Small Business
Financial management strategies and tools for small business owners
Debt Service Coverage Ratio (DSCR) Explained: The Number That Decides Your Business Loan
DSCR equals net operating income divided by total debt service. Most conventional lenders require at least 1.25, SBA programs 1.1 to 1.25, and a ratio below 1.0 is an automatic decline. Here is how to calculate yours, the mistakes that sink applications, and how to improve a weak ratio before you apply.
The Deferred Sales Trust: How Business Owners Defer Capital Gains on an Exit Without a 1031 Exchange
A deferred sales trust lets a business owner spread capital gains tax from a sale over 10-20 years under IRC Section 453 with no like-kind reinvestment requirement, but setup and management fees commonly total $100,000-$300,000+ over a decade and the IRS has never issued formal guidance approving the structure.
Disability Buy-Out Insurance: The Buy-Sell Agreement Gap Most Co-Owners Miss
A 35-year-old is six times more likely to become disabled than to die before 65, yet most buy-sell agreements only plan for death. How disability buy-out (DBO) insurance funds a co-owner buyout — elimination periods, cross-purchase vs. entity redemption, and why premiums are nondeductible but proceeds are tax-free.
A Divorce Mediator's Guide to Bookkeeping: Retainers, Referrals, and the Home-Office Deduction
Divorce mediators should book retainers as a liability until sessions are billed, claim the home-office deduction on genuinely low overhead, and track referral relationships with attorneys and therapists as a real marketing channel.
The DOL's Fiduciary Rule Just Died Again: What Small Employers Running a 401(k) Need to Know Now
Texas federal courts vacated the DOL's Retirement Security Rule in March 2026, reverting fiduciary status for retirement advice to the 1975 five-part test — the second such rule struck down since 2018. Here's what 401(k) plan sponsors should check now: advisor fiduciary status in writing, compensation disclosures, and a documentation checklist, plus what the DOL's new alternative-assets safe harbor proposal means for small plans.
Drone Light Show Bookkeeping: Depreciating a Fleet and Pricing Against Fireworks
A drone light show fleet is a depreciable capital asset, not a consumable, so operators need per-unit asset registers, Section 179 or MACRS five-year schedules, a budgeted attrition reserve, and job-costed FAA waiver and insurance fees to price a show correctly against fireworks.
Employee Monitoring Disclosure Laws in 2026: What Small Businesses Must Tell Their Teams
Five states — Maine, Connecticut, Delaware, New York, and Colorado — now require written notice before monitoring employees. Maine's 2026 law adds annual re-notice, disclosure during hiring, and $100–$500 fines per violation, while Connecticut's expanded rules take effect October 1, 2026. Here is how to write one monitoring policy that satisfies every state.
The Free Lunch Is Officially Over: What OBBBA's 0% Meal Deduction Means for Your Business in 2026
Starting January 1, 2026, OBBBA's new IRC §274(o) cuts the employer deduction for on-site cafeterias, office snacks, and "convenience of the employer" meals from 50% (or 100%) to zero, while client meals, travel meals, and restaurant employee meals keep their old treatment. Here's the math on what the change costs and how small businesses should restructure their books.
Entrepreneurship Through Acquisition: How Search Funds Turn Managers into Owners
Search funds have returned a 33.9% aggregate IRR and 4.75x invested capital across 862 funds since 1984, per Stanford's 2026 study. Here's how entrepreneurship through acquisition works — traditional and self-funded search structures, SBA 7(a) financing, typical deal metrics, and why quality of earnings diligence decides the outcome.
EPA's PFAS Reporting Rule (TSCA 8(a)(7)): What Small Manufacturers and Importers Must Report Back to 2011
EPA's TSCA Section 8(a)(7) rule requires manufacturers and importers of roughly 770 PFAS chemicals to report production, use, and disposal data back to January 1, 2011. The submission window now opens January 31, 2027 (or 60 days after a final scope rule), with proposed exemptions for articles and concentrations at or below 0.1% — here's what small businesses should document now.
Bookkeeping for Falconry Bird Abatement Businesses
Falconry-based bird abatement businesses must book raptors as fixed-asset overhead (roughly $1,500–$3,000+ per bird per year for food, vet care, and equipment) rather than supplies, and cost each contract individually since day rates and permit obligations vary by site and jurisdiction.
Farmers Market Vendor Bookkeeping: Reconciling Cash, SNAP/EBT Tokens, and Scale Tickets
How farmers market vendors keep cash, card, SNAP/EBT tokens, and nutrition-incentive matches reconciled — log every payment rail the same day, book market-reimbursed tokens as receivables rather than same-day revenue, retain NTEP-certified scale tickets as legal records, and split raw versus processed sales between Schedule F and Schedule C.