Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
IRS Publication 334 is the free tax guide for Schedule C filers: business income, deductions, self-employment tax, and estimated payments in twelve chapters.
Inventory turnover is COGS divided by average inventory — apparel typically turns 4 to 6 times a year. Track it quarterly to spot dead stock and free cash.
A balanced trial balance still hides duplicates, omissions, and wrong-account postings — reconcile balance-sheet accounts, then fix with documented entries.
Your billable rate must cover income, overhead, and the 15.3% IRS self-employment tax across only the hours you invoice — then add margin.
Dissolving a corporation or LLC takes a state filing, a final return with the box checked, and Form 966 within 30 days — miss one and the bills keep coming.
Divide total liabilities by total assets: under 0.5 is healthy, over 0.7 is fragile, and lenders recompute it after adding your loan.
Your loan's true cost is rate x (1 - IRS tax rate); fund only growth projects beating it by 3+ points, and kill 15%+ APR debt first.
Coverdell ESAs cap at $2,000 per child with IRS income phaseouts; 529s have no income limits and far higher caps. Pick by income, K-12 needs, and control.
A surcharge is a capped percentage tied to the card; a convenience fee is a flat charge tied to the channel — mislabel one and surcharge rules still apply.
A contra account offsets its parent without erasing it: accumulated depreciation, allowance for doubtful accounts, and sales returns show gross and net.
The IRS issues most e-filed refunds within 21 days — track yours with Where's My Refund using your SSN, filing status, and exact refund amount.
Divide operating cash flow by debt principal, capex, and owner draws: above 1.0 the business funds itself, below it the gap comes from borrowing or reserves.
