991 tagged with "Bookkeeping"
Modern bookkeeping techniques using plain-text and automated workflows
Bookkeeping for Private Investigators: Retainers, Job Costing, and 1099 Compliance
Private investigation agencies should book client retainers as liabilities until earned, track costs per case with job costing, and classify subcontractors correctly to avoid misclassification penalties and licensing risk.
2/10 Net 30 Explained: How a 2% Discount Becomes a 37% Annualized Return
A 2/10 Net 30 trade discount — 2% off for paying within 10 days instead of 30 — is equivalent to an annualized return of roughly 37%, making it one of the highest guaranteed returns available to a small business's idle cash.
Automatic Gratuity Isn't a Tip: Payroll, Tax, and 'No Tax on Tips' Rules for Restaurants
Automatic gratuities fail the IRS's four-factor tip test and must be taxed as wages, which excludes them from the FICA tip credit, the FLSA overtime rate, and the new "no tax on tips" deduction.
Bartering Isn't Free: How the IRS Taxes Trade Exchanges and What Small Businesses Must Report on Schedule C
Bartering income is taxable at fair market value the moment goods or services change hands, and for sole proprietors it flows into Schedule C gross receipts and triggers 15.3% self-employment tax, even when no Form 1099-B ever arrives.
Cash Over and Short: Turning Till Discrepancies Into an Audit Trail
The Cash Over and Short account records the gap between expected and actual cash counts as a debit (shortage) or credit (overage), turning routine till discrepancies into a trackable, auditable pattern instead of a buried miscellaneous expense line.
Days Cash on Hand: The Liquidity Metric That Predicts Business Survival
Days cash on hand measures how many days a business can pay operating expenses using only its current cash balance, with small businesses typically running 30–60 days and 90+ days considered a strong cushion.
Direct vs. Indirect Cash Flow Statement Method: Which One Fits Your Small Business?
The indirect method reconciles net income to operating cash flow using existing income-statement and balance-sheet data and is used by roughly 98% of public companies, while the direct method lists actual cash receipts and payments by category, which GAAP and IFRS both explicitly encourage; both always reconcile to the same total but answer different questions.
Dry Cleaning Bookkeeping: Per-Garment Costing and the Hidden Expenses That Erode Margin
A dry cleaning shop spending $15,000 a month to process 5,000 garments has a $3-per-piece baseline cost before profit — and hidden expenses like re-cleans, unclaimed garments, and idle machine capacity routinely push real costs above the price on the counter.
Bookkeeping for Private Music Teachers: Deferred Revenue, Home Studios, and Quarterly Taxes
Independent music teachers who collect payment directly from students run a Schedule C business subject to 15.3% self-employment tax, must book prepaid lesson packages as deferred revenue rather than income, and face a new $2,000 1099-NEC threshold starting in 2026.
Interchange vs. Markup: What's Actually Negotiable in Credit Card Processing Fees
Credit card processing is three stacked fees — interchange, network assessments, and processor markup — but only the markup is negotiable, and on $30,000 in monthly volume the gap between flat-rate and a well-negotiated interchange-plus deal can run $200-$400 a month.
IRS FIRE System Shutdown: What 1099 and W-2 Filers Need to Know About IRIS
The IRS retires the FIRE e-filing system on December 31, 2026, requiring all 1099 and W-2 filers to switch to IRIS for tax year 2026 returns, and a new Transmitter Control Code alone can take 45 or more days to approve.
On-Demand 3D Printing Service Bookkeeping: True Costs, Failure Rates, and Depreciation
Filament is only 20-30% of what a 3D print actually costs - machine depreciation, a 2-25% failure rate, and labor make up the rest, and Section 179 combined with 100% bonus depreciation under the OBBBA can let a print-for-hire shop deduct a new printer's full cost in the year it's purchased.