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Bookkeeping

Modern bookkeeping techniques using plain-text and automated workflows

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12 min read

DOL Independent Contractor Final Rule: The Six-Factor Economic Realities Test and What Small Businesses Must Document in 2026

The 2024 DOL Independent Contractor Final Rule and its six-factor economic realities test still govern FLSA worker classification in private lawsuits despite the May 2025 enforcement pause. Small businesses that misclassify employees face back wages of two to three years, liquidated damages, civil penalties above $2,300 per violation, and IRS payroll tax exposure—risks that clean bookkeeping and contemporaneous documentation are built to defend against.

Mike Thrift

independent-contractorcompliancesmall-business
10 min read

E-Commerce Inventory Accounting With 3PLs and Multi-Channel Fulfillment: How Online Sellers Allocate Landed Costs, Track FBA Reserved Inventory, Reconcile Marketplace Settlements, and Avoid Phantom COGS at Year-End

Multi-channel sellers routinely lose 22 margin points to phantom COGS — unallocated landed costs, FBA reserved inventory, and netted marketplace settlements posted as revenue. A four-step playbook to keep e-commerce books honest from supplier invoice to year-end true-up.

Mike Thrift

e-commerceinventorycost-of-goods-sold
15 min read

Form 8825 Demystified: How Partnerships and S-Corps Report Rental Real Estate Without Triggering an IRS Letter

Form 8825 consolidates partnership and S-corp rental real estate activity, with line 21 flowing to Schedule K-1 box 2 where each owner applies the passive activity loss rules under Section 469. The December 2025 revision splits gross rents from other rental income and adds Schedule A's twenty named expense categories for Schedule M-3 filers. Owners hit basis, at-risk, and passive walls in that order before a loss reaches Form 1040.

Mike Thrift

real-estatepartnershipss-corp
14 min read

Schedule F Survival Guide: Crop Insurance Deferral, Section 1033(e) Livestock Sales, and Schedule J Income Averaging

Schedule F farm tax elections explained — crop insurance deferral under Section 451(f), weather-forced livestock replacement under Section 1033(e), Section 175 conservation deductions, the Section 464 prepaid-supply cap, the March 1 estimated-tax rule, and Schedule J three-year income averaging — with rules, deadlines, and worked examples.

Mike Thrift

taxtax-planningtax-deductions
13 min read

Section 274(n) and 274(o) in 2026: The 50% Business Meal Rule, the New Office-Snacks Cliff, and Audit-Proof Documentation

The OBBBA's new Section 274(o) eliminates the deduction for employer-provided office meals starting January 1, 2026, while Section 274(n)'s 50% rule still covers client and travel meals. Here is the full 50%/100%/0% map, the documentation auditors expect, and the four-account bookkeeping setup that keeps year-end clean.

Mike Thrift

taxtax-deductionstax-compliance
11 min read

SECURE 2.0 Section 101: Mandatory Auto-Enrollment for New 401(k) and 403(b) Plans (2026 Compliance Guide)

SECURE 2.0 Section 101 requires new 401(k) and 403(b) plans established after December 29, 2022 to auto-enroll employees at a 3-10% default deferral with 1% annual escalation. A 2026 compliance guide covering EACA notices, the four exemptions, QDIA selection, the 90-day permissible withdrawal, and the December 31, 2026 plan amendment deadline.

Mike Thrift

retirement-planspayrollcompliance
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