How the IRS Punishes C Corporations That Hoard Cash: The Two 20% Penalty Taxes, Explained
The IRS charges C corps an extra 20% for hoarding cash beyond business needs or earning 60%+ passive income — dividends and documented plans avoid both.
#small-business
Small Business
Financial management strategies and tools for small business owners
The Equal Pay Act, Explained: What Small Employers Owe Workers in Substantially Equal Jobs
The Equal Pay Act requires equal pay for substantially equal work — intent is irrelevant. The four-part test, the four defenses, and a six-step payroll audit.
Equivalent Annual Cost, Explained: How to Compare Equipment and Projects With Unequal Lives
EAC annualizes each option's lifetime cost into a level yearly charge — lowest EAC wins, whatever the sticker prices say.
The Excess Earnings Method, Explained: How Appraisers Split Your Business Value Between Tangible Assets and Goodwill
The excess earnings method prices goodwill as profit above a fair return on tangible assets, capitalized at 15-20% — then adds tangibles for total value.
FRAND Licensing, Explained: How Fair, Reasonable, and Non-Discriminatory Promises Govern Standard-Essential Patents
FRAND commits standard-essential patent owners to license any implementer on fair terms — learn the royalty math and budget per-unit costs before you ship.
Going-Concern Assessment, Explained: Can Your Business Pay Its Bills for the Next Year?
Under ASC 205-40, management must test whether the business can pay its bills for a year after issuance — and disclose substantial doubt either way.
Guideline Public Company vs. Guideline Transaction Method: How Appraisers Value a Private Business
Appraisers value private companies off public trading multiples and past deals, then add a 20–40% control premium and subtract marketability discounts.
Loan Amortization Schedule: How Each Payment Splits Into Interest and Principal
Interest is charged on the balance you still owe, so early payments are interest-heavy. Build the schedule, model prepayments, and book the split.
The 4-5-4 Retail Calendar, Explained: Why Retailers Count Months in Whole Weeks
The 4-5-4 calendar divides each quarter into 4-, 5-, and 4-week months so every period holds whole weekends — plus a 53rd week every five to six years.
Standard Costing and Variance Analysis, Explained: How Price and Quantity Standards Turn Cost Overruns Into Variances You Can Act On
Standard costing sets a price and quantity benchmark per unit; materials, labor, and overhead variances split every overrun into causes with owners.
Utility vs. Design vs. Plant Patents: Which Patent Fits Your Invention?
Utility patents protect how an invention works for 20 years, design patents protect how it looks for 15, and plant patents cover asexually reproduced varieties.
Accounting Conservatism, Explained: Why Your Books Recognize Losses Early and Gains Late
GAAP books losses now, gains only when realized: allowance reserves, inventory write-downs, ASC 450 contingencies, and where prudence becomes manipulation.