SaaS Magic Number, Efficiency Score, and Default Alive Test: Is Your Growth Efficient?
A Magic Number above 1.0 means each S&M dollar buys more than a dollar of ARR — compute it with the one-quarter lag, then check the Default Alive test.
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Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
RESPA, Explained for Homebuyers: What Your Loan Estimate and Closing Disclosure Must Show, the Kickback Bans That Keep Closing Costs Honest, and the Escrow Cap That Limits Your Servicer
RESPA locks lender fees to the Loan Estimate quote, bans referral kickbacks, and caps escrow cushions at two months — know the buckets before you sign.
Term Sheet Control Terms: Protective Provisions, Pro Rata Rights, Information Rights, and Side Letters Explained
Protective provisions veto company sales and new debt; pro rata, information rights, and side letters decide who buys, sees, and gets special terms.
PITI, Explained: The Four Parts of Your Mortgage Payment and the 28/36 Rule That Decides How Much House You Can Afford
PITI — principal, interest, taxes, insurance — is your real monthly mortgage payment, and the 28/36 rule caps housing at 28% of gross income.
The Piotroski F-Score, Explained: Nine Binary Tests That Separate Strong Value Stocks From Value Traps
The Piotroski F-Score grades cheap stocks on nine yes-or-no tests of profitability, leverage, and efficiency: 8 or 9 signals strength, 0-2 signals a trap.
Perpetual vs. Periodic Inventory: When Real-Time Tracking Beats Count-and-Calculate
Perpetual inventory updates stock and COGS with every sale; periodic backs COGS out of a physical count — pick by SKU count, volume, and margin.
NAICS Codes Explained: How Your 6-Digit Industry Code Decides Your SBA Size Standard
Your NAICS code picks the SBA size standard you are judged against — wrong code, wrong yardstick, lost loans and set-asides.
Home Equity Loan vs. HELOC: Lump Sum or Revolving Line — and Why Both Put Your House on the Line
Lump sum at a fixed rate versus draws as needed at a variable rate — and the IRS allows the interest deduction only when the money improves your home.
Form 4562, Explained: How Small Businesses Report Section 179, Bonus and MACRS Depreciation, Listed Property, and Amortization
Form 4562 reports Section 179, bonus and MACRS depreciation across six parts — expense first, bonus second, MACRS on the rest.
The FLSA Duties Tests, Explained: How the Executive, Administrative, Professional, Computer, and Outside Sales Exemptions Work — Plus the Salary Basis Rule That Disqualifies Hourly Managers
A salary above $35,568 doesn't make a worker exempt — FLSA duties tests and the salary basis rule decide, and titles count for nothing.
Constructive Receipt, Explained: Why Income You Haven't Touched Is Already Taxable
IRS rules tax income when it is available, not when you cash the check — December bonuses and uncashed checks count for this year.
Capitalization Policy, Explained: The $2,500 and $5,000 De Minimis Safe Harbors, the Annual Election Statement, and the Companion Rules
IRS de minimis safe harbor — expense business items up to $2,500 ($5,000 with audited financials) with a written policy plus an annual election.