How to Calculate Your Effective Hourly Rate: Cover Overhead, Taxes, and Profit on Every Billable Hour
Your billable rate must cover income, overhead, and the 15.3% IRS self-employment tax across only the hours you invoice — then add margin.
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Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
How to Dissolve a Corporation or LLC: Final Returns, Form 966, and Closing Tax Accounts
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.
Debt-to-Asset Ratio: How Much of Your Business Do You Actually Own?
Divide total liabilities by total assets: under 0.5 is healthy, over 0.7 is fragile, and lenders recompute it after adding your loan.
Debt Paydown vs. Reinvestment ROI: How to Decide What Your Extra Cash Should Do
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 ESA vs. 529 for Business Owners: Contribution Limits, Phaseouts, and Which Account Fits
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.
Convenience Fees vs. Surcharges: The Flat Fee You Can Charge When Surcharge Rules Say You Can't
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.
Contra Accounts Explained: The Offsets That Keep Your Financial Statements Honest
A contra account offsets its parent without erasing it: accumulated depreciation, allowance for doubtful accounts, and sales returns show gross and net.
How to Check Your IRS Refund Status (and What to Do When It's Late)
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.
The Cash Flow Adequacy Ratio: Can Your Operating Cash Cover Debt, Capex, and Owner Draws?
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.
Cash Concentration vs. Notional Pooling: Stop Letting Idle Cash Sit in the Wrong Account
Cash concentration sweeps idle balances into one master account daily; notional pooling only nets interest on paper. For small business, sweep accounts win.
Business Credit Card Reconciliation: How to Match Statements to Receipts and Catch Fraud Early
Match every card charge to a receipt and a business purpose each month, so fraud surfaces in weeks and every deduction stays defensible.
Break-Even Analysis in Units and Dollars: Your Minimum Viable Sales Number
Break-even units equal fixed costs divided by contribution margin — run it in units and dollars, then guard it with a margin of safety.