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.
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Small Business
Financial management strategies and tools for small business owners
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.
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.
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.
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.
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.
General Ledger Cleanup: How to Find and Fix Common Posting Errors Before Your CPA Does
A balanced trial balance still hides duplicates, omissions, and wrong-account postings — reconcile balance-sheet accounts, then fix with documented entries.
Inventory Turnover Ratio for Small Retailers: How to Calculate Days Sales in Inventory, Spot Dead Stock, and Free Cash Trapped on Shelves
Inventory turnover is COGS divided by average inventory — apparel typically turns 4 to 6 times a year. Track it quarterly to spot dead stock and free cash.
IRS Publication 334 Explained: The Tax Guide Every Schedule C Filer Should Read Before Filing
IRS Publication 334 is the free tax guide for Schedule C filers: business income, deductions, self-employment tax, and estimated payments in twelve chapters.
Marketplace Payment Reconciliation: Record Gross Sales, Not the Deposit
Record gross marketplace sales as revenue and fees as expenses — Form 1099-K reports gross Box 1a, so net-deposit bookkeeping never reconciles.
Outsourcing Bookkeeping vs. In-House Staff: What Growing Businesses Actually Pay
In-house bookkeeping costs $60,000–$90,000 a year all-in; outsourcing runs $200–$800 a month — compare scope, scale, and fraud controls before hiring.
Reconciling Forms 941, W-2, and W-3: The Year-End Payroll Checklist That Prevents IRS and SSA Mismatch Notices
Your four Forms 941 must agree with your W-2 and W-3 totals or the SSA sends a reconciliation notice — run this 10-step tie-out before January 31.