The SmallBooks blog
Plain-English bookkeeping for people who'd rather run their business than study accounting.
How to record credit card payments in your books (without double counting)
Paying your credit card is not an expense. Here is how to record it so your profit and loss stays honest, and what to do if the card is not in your books yet.
Accounts receivable and accounts payable, explained for small business owners
AR is money owed to you, AP is money you owe. Here is how they show up in simple books, how to record payments, and why you should never categorize a transaction straight to them.
Owner contributions and owner draws: how to record money between you and your business
Money you put in is not income and money you take out is not an expense. Use the equity categories, keep your profit and loss honest, and know what your accountant expects.
Transfers vs expenses: why moving money between your accounts is not spending
Checking to savings, checking to the credit card, one bank to another: transfers are the most common way books double count. Here is how to spot and record them correctly.
Seven Bookkeeping Mistakes That Quietly Cost Small Businesses Money
None of these are dramatic. All of them are expensive. Most take minutes to fix once named.
Quarterly Estimated Taxes: A Calendar and a Checklist
Nobody withholds taxes for the self-employed, you're the payroll department now. Here's the year at a glance.
Cash Flow vs. Profit: Why Profitable Businesses Still Go Broke
Profit is an opinion about a period. Cash is a fact about today. Confusing them is how healthy-looking businesses die.
Chart of Accounts 101 for Small Businesses
The chart of accounts is your books' table of contents. Small businesses need a shorter one than they think.
How Long to Keep Receipts (and the IRS Rules Behind It)
Three years? Seven? Forever? The actual retention rules, and why digital copies changed the game.
Paying 1099 Contractors: What to Track All Year
January's 1099 filing is painless or miserable depending entirely on what you recorded from February onward.
What Is Bank Reconciliation? A Plain-English Guide
Reconciliation sounds like accountant ceremony. It's actually a five-minute honesty check, and the reason you can trust your reports at all.
Separating Business and Personal Finances: Why and How
The single highest-leverage move in small-business bookkeeping costs nothing and takes an afternoon.
How to Read a Profit & Loss Statement (Without an Accounting Degree)
The P&L is the one report every owner should read monthly. Here's what each line means and the three questions it should answer.
Schedule C Deductions Small Businesses Commonly Miss
Sole proprietors leave real money on the table every year, usually because the expense was never recorded, not because they didn't qualify.
The 15-Minute Monthly Bookkeeping Routine
Books don't fall apart in April, they fall apart in the eleven months before. Here's the short monthly ritual that keeps them honest.
Cash vs. Accrual Accounting: Which Should a Small Business Choose?
The one accounting decision every small business makes on day one, usually without realizing it. Here's the difference in plain English, and how to pick.