#small-business
Financial management strategies and tools for small business owners
Assets minus liabilities equals equity — and three ratios (current, quick, debt-to-equity) tell you in five minutes whether your business is solvent.
Operating cash flow, not net income, shows whether your business generates cash — read all three sections in five minutes a month.
Outsourced bookkeeping runs $250–$700 a month while a loaded in-house hire costs $69,000-plus a year — see which wins at $50K, $500K, and $5M in revenue.
Working S corporation owners must take reasonable W-2 wages before distributions — the IRS tests the salary against nine factors, not the 60/40 myth.
Shopify payouts are net settlements, not revenue — book gross sales, split every fee, and stage chargebacks; your 1099-K reports the gross to the IRS.
Shopify labels bill separately from payouts — split each invoice, book postage to COGS, and remit sales tax collected on shipping.
Residential rentals depreciate over 27.5 years, commercial over 39 — claim the IRS straight-line deduction yearly, then plan for 25% recapture at sale.
Work that betters, restores, or adapts a unit of property is an IRS improvement you capitalize — everything else is a deductible repair.
Post-money SAFEs lock each investor's percentage at signing, so stacked SAFEs dilute founders. Model caps, discounts, and warrants before you sign.
SBA's Working Capital Pilot offers 7(a) lines up to $5M — asset- or transaction-based — with borrowing-base certificates setting availability.
The IRS starting-a-business checklist covers structure, EIN, tax year, recordkeeping, and retirement plans — finish all seven before your first quarter closes.
Stripe payouts are net cash transfers, not revenue — book annual prepayments to deferred revenue and recognize one-twelfth monthly.
