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Mike Thrift

Marketing Manager

3174 postsView all authors
Teeth-Whitening Studio Bookkeeping: Why an 85% Gross Margin Can Still Hide a Losing Business
·mike

Teeth-Whitening Studio Bookkeeping: Why an 85% Gross Margin Can Still Hide a Losing Business

Teeth-whitening studios often run an 85%+ gross margin on sessions but fail because they recognize prepaid package revenue too early, skip inventory shelf-life write-offs, and miscategorize licensing costs tied to their state's cosmetic-vs-dental classification.

teeth-whitening
small-business
bookkeeping
Tennessee's Noncompete Ban: What the $70,000 Threshold Means for Small Employers
·mike

Tennessee's Noncompete Ban: What the $70,000 Threshold Means for Small Employers

Tennessee's HB 1034 voids noncompetes for workers earning under $70,000 in annualized compensation as of July 1, 2026, and sets 2/3/5-year presumed-reasonable durations for everyone else. Here's how small employers should audit existing agreements, calculate the threshold, and shift to nonsolicitation and NDA protection.

small-business
legal
compliance
Tennessee's New Noncompete Ban: A Multi-State Employer's Compliance Guide
·mike

Tennessee's New Noncompete Ban: A Multi-State Employer's Compliance Guide

Effective July 1, 2026, Tennessee voids noncompete agreements for workers earning under $70,000 in total annual earnings, making it the 13th U.S. jurisdiction to tie enforceability to a compensation threshold — a shift that turns compliance into a payroll-data problem for any business with employees, contractors, or franchisees in more than one state.

compliance
small-business
hiring
Thermal Circuits v. Commissioner: Why Customer-Funded Facility Expansions Are Taxable Income
·mike

Thermal Circuits v. Commissioner: Why Customer-Funded Facility Expansions Are Taxable Income

In Thermal Circuits, Inc. v. Commissioner, the Tax Court held that $4.3 million a customer paid to expand a manufacturer's facility was taxable income, not an excludable Section 118 capital contribution — because Thermal controlled the asset, the money was compensation for guaranteed capacity, and post-TCJA Section 118(b) excludes any customer contribution or contribution in aid of construction. What the ruling means for prepayments, tenant improvement allowances, and capacity deals.

tax
tax-compliance
tax-planning
Throughput Accounting and the Theory of Constraints: Find Your Business's One Real Bottleneck
·mike

Throughput Accounting and the Theory of Constraints: Find Your Business's One Real Bottleneck

Throughput accounting reduces business decisions to three numbers — throughput, investment, and operating expense — and argues that only fixing the single binding constraint, not cutting costs everywhere, increases how much money a business actually makes.

theory-of-constraints
accounting-basics
financial-management
Times Interest Earned Ratio Explained: The Number Lenders Check First
·mike

Times Interest Earned Ratio Explained: The Number Lenders Check First

The times interest earned (TIE) ratio — EBIT divided by interest expense — tells lenders how many times over your operating earnings cover your interest bill. Most lenders want at least 2.5–3.0; below 1.5 signals high default risk. Here's how to calculate it, where it falls short, and how to improve it before a loan application.

financial-ratios
loans
business-loans
Used Cooking Oil Collection: A Bookkeeping Guide for a Commodity Business on Wheels
·mike

Used Cooking Oil Collection: A Bookkeeping Guide for a Commodity Business on Wheels

A single 50-gallon barrel of used cooking oil is worth $100-185 to a biodiesel refiner, so collectors must book collected-but-unsold oil as inventory-in-transit, track actual weighed pounds per stop rather than estimates, and reconcile collected-to-shipped volume weekly to catch theft and double-invoicing before it erodes route profitability.

small-business
bookkeeping
inventory
One Missing Sentence Cost a Donor a $4.4 Million Charitable Deduction — What Wells v. Commissioner Requires of Your Acknowledgment Letter
·mike

One Missing Sentence Cost a Donor a $4.4 Million Charitable Deduction — What Wells v. Commissioner Requires of Your Acknowledgment Letter

In Wells v. Commissioner (2026), the Tax Court disallowed a $4.42 million charitable deduction for donated real estate because the charity's acknowledgment letter was undated and never stated whether the donors received goods or services in return — Section 170(f)(8) demands strict, not substantial, compliance. The 20% accuracy penalty was abated only because the donors documented good-faith reliance on their CPA.

charitable-giving
tax-deductions
tax-compliance
Where to Park Idle Business Cash in 2026: High-Yield Savings, CDs, and Sweep Accounts
·mike

Where to Park Idle Business Cash in 2026: High-Yield Savings, CDs, and Sweep Accounts

As of mid-2026, competitive business savings accounts pay roughly 3.5%–3.75% APY while the national average sits near 0.4% — a $150,000 idle balance in a 0.01% checking account forgoes about $5,000 a year. A timeline-based framework for placing tax reserves, operating buffers, and balances above the $250,000 FDIC limit into high-yield savings, CD ladders, ICS/CDARS sweep programs, and Treasury money market funds.

small-business
treasury-management
business-banking
White v. Commissioner: Can the IRS Levy You While You're Current on a Payment Plan?
·mike

White v. Commissioner: Can the IRS Levy You While You're Current on a Payment Plan?

In White v. Commissioner (T.C. Memo. 2026-56), the Tax Court blocked an IRS levy on a taxpayer who was current on a court-approved installment settlement, holding the levy violated Section 6330's "no more intrusive than necessary" standard. What the ruling means for anyone on an IRS payment plan, and why a CDP hearing request within 30 days is the critical first move.

tax
tax-compliance
small-business
Wildlife & Nuisance Animal Control Bookkeeping: Trip Fees, Trapping Revenue, and Warranty Reserves
·mike

Wildlife & Nuisance Animal Control Bookkeeping: Trip Fees, Trapping Revenue, and Warranty Reserves

How wildlife and nuisance animal control operators should structure their books: separate revenue codes for trip fees ($75–$200), per-animal trapping charges ($100–$250), and exclusion jobs; amortize NWCO licenses on each state's actual term; and accrue a warranty reserve from real callback rates instead of expensing redo visits as they land.

pest-control
bookkeeping
small-business
Wine Bar and Wine Shop Bookkeeping: FIFO Inventory, By-the-Glass Costing, and the On-Premise/Off-Premise Split
·mike

Wine Bar and Wine Shop Bookkeeping: FIFO Inventory, By-the-Glass Costing, and the On-Premise/Off-Premise Split

A 750ml bottle yields about 5 five-ounce pours, and wine pour cost typically runs 25–30% versus 18–24% for liquor. This guide covers FIFO costing by vintage, by-the-glass yield math, shrinkage as a real COGS line, and why wine bars need separate on-premise and off-premise revenue and COGS accounts from day one.

bookkeeping
inventory
cost-of-goods-sold
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