Blog
Plain-text accounting insights, tutorials, and updates from the Beancount.io team. Browse by tag.
Cost of Goods Sold (COGS): What It Is, How to Calculate It, and Why It Matters for Your Business
Learn what cost of goods sold (COGS) is, how to calculate it using the COGS formula, and why it matters for profitability and taxes. Includes inventory valuation methods, common mistakes, and tips to reduce COGS for small businesses.
Business Valuation: How to Determine What Your Company Is Worth
Learn how to determine what your business is worth using the four main valuation methods: asset-based, earnings multiple (SDE/EBITDA), market-based, and discounted cash flow. Includes formulas, industry multiples, and tips to increase your company's value.
Burn Rate: What It Is, How to Calculate It, and Why It Matters
Learn what burn rate is, how to calculate gross and net burn rate, and why this metric is critical for startups and small businesses. Includes formulas, stage-by-stage benchmarks, common mistakes, and strategies to extend your cash runway.
Break-Even Point: What It Is, How to Calculate It, and Why Every Business Owner Needs to Know
Learn what the break-even point is, how to calculate it with the break-even formula, and why every business owner needs this analysis. Includes step-by-step examples, common mistakes to avoid, and strategies to lower your break-even point.
Bad Debt Expense: What It Is, How to Calculate It, and How to Record It
Learn what bad debt expense is, how to calculate it using the direct write-off and allowance methods, and how to record it properly. Includes journal entries, formulas, aging schedules, and tips for managing uncollectible accounts.
When and How to Change Your Business Entity Structure
Learn when and how to change your business entity structure, from sole proprietorship to LLC, LLC to S-Corp, or LLC to C-Corp. Includes income thresholds, step-by-step processes, tax implications, and common mistakes to avoid.
Understanding Loan Amortization: How to Calculate and Track Your Business Loan Payments
Learn how loan amortization works, how to calculate your monthly payments, read an amortization schedule, and choose the right loan structure for your small business. Includes current 2026 rates and practical examples.
Small Business Retirement Plans: 401(k) vs. SEP IRA vs. SIMPLE IRA
Compare the three most popular small business retirement plans—401(k), SEP IRA, and SIMPLE IRA—with 2026 contribution limits, pros and cons, and a decision framework to find the best fit for your business.
Protecting Your Business Intellectual Property: A Complete Guide to Trademarks, Patents, and Copyrights
Your intangible assets may be worth more than all your physical equipment combined. Learn how to protect your business with trademarks, patents, copyrights, and trade secrets—including 2025-2026 USPTO filing costs, step-by-step strategies, and the 10 most common IP mistakes to avoid.
Mid-Year Financial Checkup: A Complete Guide for Small Business Owners
A step-by-step mid-year financial checkup guide for small business owners. Learn how to review financial statements, compare budget vs. actual performance, assess cash reserves, optimize taxes, and plan for a stronger second half.
How to Manage Your Business Finances Through Seasonal Fluctuations
Up to 70% of businesses face seasonal revenue swings. Learn practical strategies for building cash reserves, diversifying revenue, negotiating payment terms, and creating a 12-month forecast to keep your business financially healthy year-round.
Inventory Accounting Methods: FIFO, LIFO, and Weighted Average Explained
Learn the three main inventory accounting methods—FIFO, LIFO, and Weighted Average—with real examples, side-by-side comparisons, tax implications, and guidance on choosing the right method for your small business.