#small-business
Financial management strategies and tools for small business owners
Demand is elastic above 1 — cut prices to grow revenue — and inelastic below 1, where increases pay. The midpoint formula measures which side you are on.
Depreciation, amortization, prepaids, and accruals post monthly so each period carries its own costs — templates plus a quarterly review keep them honest.
The step-down method allocates service-department costs in ranked sequence, each step normalized over open departments only.
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.
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.
EAC annualizes each option's lifetime cost into a level yearly charge — lowest EAC wins, whatever the sticker prices say.
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 commits standard-essential patent owners to license any implementer on fair terms — learn the royalty math and budget per-unit costs before you ship.
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.
Appraisers value private companies off public trading multiples and past deals, then add a 20–40% control premium and subtract marketability discounts.
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 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.
