Onerous Contracts, Explained: When a Loss-Making Contract Becomes a Liability
A contract is onerous when unavoidable costs exceed benefits — provision the lower of the fulfillment loss and the exit penalty.
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Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
Monthly Bookkeeping Checklist: The Daily, Weekly, Monthly, and Quarterly Tasks That Keep Your Books Clean
Reconcile monthly, chase invoices weekly, pay IRS estimates quarterly — the daily-to-quarterly checklist that keeps small-business books clean.
The Graham Number, Explained: The Maximum Price Benjamin Graham Would Pay for a Stock
The Graham Number — the square root of 22.5 × EPS × BVPS — caps what a defensive investor pays: below it, research the stock; above it, pass.
FCL vs. LCL Shipping: When Booking a Full Container Beats Sharing One
Past about 15 cubic meters, a full container usually beats sharing one — compare all-in quotes, count the LCL days, and capitalize freight into inventory.
The Divorce Financial Checklist: What to Gather, Inventory, Freeze, and Retitle Before You File
Gather tax returns, statements, and business records before filing — then freeze joint credit, split the 401(k) by QDRO, and update beneficiaries.
Check Float, Explained: Why Your Money Counts Twice While a Check Is in Transit
Float is the gap between writing a check and the money moving — mail, processing, and clearing delays that make your bank balance overstate your cash.
The Business Judgment Rule, Explained: Why Courts Won't Second-Guess Your Board's Honest Mistakes
The business judgment rule presumes directors acted informed and in good faith — honest mistakes stay protected; fraud, conflicts, and gross negligence don't.
Appraisal Rights, Explained: How Dissenting Shareholders Force a Court to Price Their Shares
Appraisal rights let a dissenting shareholder refuse the deal price and take court-determined fair value instead — with no minority discount.
1031 Improvement Exchanges, Explained: How to Build or Renovate Your Replacement Property With Exchange Funds
A 1031 improvement exchange lets IRS-safe-harbor EAT parking turn sale proceeds into construction funds — but only work finished by day 180 counts.
REITs, Explained: How Real Estate Investment Trusts Turn Rent Into Dividends
REITs must pay out 90% of taxable income to keep their tax status — so yields run high, dividends face ordinary rates, and Section 199A deducts 20%.
Recapitalizations, Explained: How Companies Reshape Debt and Equity Without Changing the Business
A recapitalization swaps debt for equity — or equity for debt — to cut risk, fund a buyout, or take cash out without selling the company.
The PEG Ratio, Explained: How Dividing P/E by Earnings Growth Separates a Fair Price From an Expensive One
PEG ratio divides P/E by earnings growth — around 1.0 is fairly valued, below 1.0 may be cheap if the growth is real.