Everything About Cost of Goods Sold

InventoryAccountingSmall BusinessCost of Goods SoldTax PlanningBookkeepingFinancial ReportingCPA

Inventory Accounting Methods Compared: FIFO, LIFO, Weighted Average, and Specific Identification for Small Businesses

A practical comparison of FIFO, LIFO, weighted average, and specific identification — with IRS rules, Form 970 and Form 3115 mechanics, the LIFO conformity trap, and a five-step framework for picking the right inventory method in 2026.

TaxTax ComplianceInventorySmall BusinessCost of Goods SoldExpense AllocationBookkeeping

Section 263A UNICAP Rules: How Small Manufacturers and Resellers Decide Which Costs Hit the P&L Now vs. Sit in Inventory

Section 263A UNICAP forces producers and resellers to attach indirect costs — rent, supervisor wages, depreciation — to inventory rather than expense them. This guide covers the 2026 $32M small-business exemption, the simplified production and resale methods, Form 3115 and the 481(a) adjustment, and the personnel-allocation mistakes that draw IRS attention.

TaxTax ComplianceTax PlanningCost of Goods SoldSmall BusinessComplianceInventoryCPA

Section 280E: How Cannabis Businesses Survive a 70% Effective Tax Rate

Section 280E bars cannabis businesses from deducting ordinary expenses, pushing federal effective tax rates past 70%. A walkthrough of the math, the COGS lever under Section 471, key Tax Court rulings (CHAMP, Olive, Harborside), and what 2026 rescheduling could change.

RestaurantAccountingCost of Goods SoldPayrollInventoryComplianceSmall BusinessChart of Accounts

Restaurant Accounting Demystified: Prime Cost, Tip Pooling, and COGS

A working guide to the three numbers that decide whether a restaurant makes money — prime cost, food and beverage COGS, and tip pooling — with 2026 benchmarks, FLSA rules, and a weekly accounting cadence.

BookkeepingAmazonE-commerceTaxInventoryReconciliationCost of Goods Sold

Bookkeeping for Amazon Sellers: The Complete Guide

A practical guide to Amazon FBA bookkeeping—covering settlement report reconciliation, FBA fee deductions, COGS calculation, multi-state sales tax nexus, inventory tracking, and quarterly estimated taxes.

Profit MarginsProfitabilitySmall BusinessFinancial ManagementFinancial RatiosAccounting BasicsCost of Goods Sold

Profit Margin: The Complete Guide for Small Business Owners

Learn how to calculate gross, operating, and net profit margins, what counts as a healthy margin by industry, and six proven strategies to improve your bottom line.

Small BusinessFinancial StatementsAccounting BasicsFinancial RatiosNet IncomeCost of Goods SoldProfitabilityProfit Margins

The Income Statement Explained: A Complete Guide for Small Business Owners

A line-by-line breakdown of the income statement for small business owners — covering revenue, COGS, gross profit, operating income, and net income, plus key ratios and the five most common mistakes that distort results.

Profit MarginsProfitabilitySmall BusinessFinancial RatiosAccounting BasicsCost of Goods Sold

How to Calculate Profit Margin: The Complete Guide for Small Business Owners

Gross, operating, and net profit margin explained with formulas, industry benchmarks, and worked examples—so small business owners can measure and improve true profitability.

AccountingSmall BusinessInventoryTax PlanningBookkeepingFinancial StatementsCost of Goods Sold

LIFO Inventory Method: What It Is, How It Works, and When to Use It

Learn how the LIFO (Last In, First Out) inventory method works, compare LIFO vs FIFO with examples, understand the tax advantages, LIFO reserve, liquidation risks, and when LIFO is the right choice for your business.

AccountingSmall BusinessInventoryBookkeepingTaxFinancial ReportingCost of Goods Sold

FIFO Inventory Method: What It Is, How It Works, and When to Use It

Learn how the FIFO (First In, First Out) inventory method works, how to calculate COGS and ending inventory, FIFO vs. LIFO differences, tax implications, and when FIFO is the right choice for your business.