Debits and Credits Explained: How Double-Entry Bookkeeping Keeps Your Trial Balance Honest
Debits grow assets and expenses; credits grow liabilities, equity, and revenue. Learn the five rules plus a 6-step hunt for trial-balance errors.
Mike Thrift
Marketing Manager
Due Diligence Checklist for Buying an Existing Business: Quality of Earnings, Working Capital, and SBA 7(a) Requirements
SBA 7(a) acquisition loans now need 1.25x coverage and a QoE above $3M — verify earnings, peg working capital, and diligence tax before you close.
The ESOP Repurchase Obligation: The Growing Buyback Bill Every Employee-Owned Company Must Budget For
A mature ESOP must buy back 2–5% of its shares yearly at fair market value — model the curve early and fund it with recycling, redeeming, or releveraging.
FIFO vs. LIFO vs. Weighted Average Cost: How Your Inventory Method Changes COGS, Profit, and Tax
FIFO maximizes reported profit when costs rise, LIFO minimizes tax, average cost splits the difference — choose by cash flow, borrowing plans, and IRS rules.
Form 8829 or the $5 Shortcut? How to Pick Your Home Office Method Without Buying a Future Tax Bill
Form 8829's actual method beats the $1,500 simplified cap until sale day, when depreciation returns at up to 25% — run both numbers yearly.
Form 945 Explained: How Small Businesses Report Backup Withholding and Nonpayroll Withholding Once a Year
Form 945 reports all backup withholding and nonpayroll withholding once a year — due January 31, with EFT deposits once the year's tax reaches $2,500.
Freight-In vs. Freight-Out: Why Inbound Shipping Belongs in COGS and Outbound Shipping Is an Operating Expense
Freight-in is part of inventory cost and becomes COGS when goods sell; freight-out is a selling expense. Mixing them distorts gross margin and tax.
Gross Profit Margin vs Net Margin: Does Your Pricing Survive Your Overhead?
Gross margin tests your pricing; net margin tests the whole business — the gap between them shows whether pricing or overhead eats your profit.
How to Calculate Cost of Goods Sold the Right Way: Beginning Inventory, Purchases, Ending Inventory, and What It Tells You About Profit
COGS equals beginning inventory plus purchases minus ending inventory — two careful counts decide your gross profit, pricing, and tax.
How to Read Your Balance Sheet Without an Accounting Degree: Assets, Liabilities, Equity, and the 5-Minute Solvency Check
Assets minus liabilities equals equity — and three ratios (current, quick, debt-to-equity) tell you in five minutes whether your business is solvent.
How to Read a Cash Flow Statement: Operating vs Investing vs Financing Activities and Why Net Income Doesn't Equal Cash in the Bank
Operating cash flow, not net income, shows whether your business generates cash — read all three sections in five minutes a month.
ISO vs. NSO Tax Treatment for Startup Employees: When Exercising Triggers AMT or Withholding
ISO exercises skip regular tax but can trigger AMT; NSO spreads land on your W-2 — IRS holding periods, withholding gaps, and the $100K limit.