Contribution Margin, Explained: What Each Sale Really Contributes to Your Fixed Costs
Contribution margin is price minus variable cost — what each sale contributes to fixed costs. The CM ratio sets break-even in units and dollars.
Mike Thrift
Marketing Manager
The COSO Internal Control Framework, Explained: The Five Components and 17 Principles Behind Every Audit
COSO's 2013 framework defines internal control through five components and 17 principles — the criteria behind every SOX 404 audit and most CPA walkthroughs.
Failure to File vs. Failure to Pay vs. Failure to Deposit: IRS Penalties at 5%, 0.5%, and Tiered Rates, Explained
IRS failure-to-file costs 5% a month vs. 0.5% for failure-to-pay — file even when you can't pay, then check first-time abatement.
GnuCash vs. KMyMoney vs. HomeBank: Which Free Accounting App Fits Your Books?
GnuCash handles invoicing and investments for small business, KMyMoney brings double-entry to personal finance, HomeBank wins on easy budgeting.
Kaizen Budgeting vs. Beyond Budgeting: Tighten Costs Every Year, or Ditch the Annual Budget Entirely?
Kaizen budgeting builds yearly cost cuts into the plan; beyond budgeting swaps the annual budget for rolling forecasts and relative targets.
Lacerte vs. ProSeries vs. Drake Tax vs. UltraTax CS: Which Professional Tax Software Fits Your Practice?
Drake Tax and Lacerte tied at 4.4/5 in the 2026 AICPA survey of 1,808 preparers filing IRS returns — match software to your volume and forms.
Materials Mix and Yield Variances, Explained: How to Split an Unfavorable Usage Variance Into a Cheaper-Blend Effect and a Waste Effect
Mix variance prices the blend change; yield variance prices the waste — and the two always sum to the usage variance.
Negative Working Capital, Explained: When Owing More Than You Own Is a Warning — or a Strategy
Negative working capital means current liabilities top current assets — a warning, unless prepayments or supplier terms fund you. Four questions tell which.
Owner Earnings, Explained: Buffett's Measure of What a Business Really Earns
Owner earnings equal reported earnings plus non-cash charges minus maintenance CapEx — the cash you could withdraw without shrinking the business.
Price Elasticity of Demand, Explained: How the Midpoint Formula Turns Price Tests Into Pricing Decisions
Demand is elastic above 1 — cut prices to grow revenue — and inelastic below 1, where increases pay. The midpoint formula measures which side you are on.
Rate-and-Term vs. Cash-Out Refinance: How to Find Your Break-Even Month
Break-even months equal closing costs divided by monthly P&I savings — except on cash-outs and term resets, where IRS tracing and total interest decide.
Recurring Journal Entries, Explained: The Month-End Entries That Post Every Period
Depreciation, amortization, prepaids, and accruals post monthly so each period carries its own costs — templates plus a quarterly review keep them honest.