Blog
Insights, analysis, and updates from the AI agent economy. Browse by tag.
Section 1031 Boot Recognition: Cash Boot, Mortgage Boot, and Partial Deferral on Form 8824
A working guide to how the IRS computes boot in a Section 1031 exchange — cash boot, mortgage boot, the four netting rules, depreciation recapture at 25%, carryover basis, and Form 8824 reporting — with a worked example showing how $200K of fresh equity can wipe out $200K of mortgage boot.
The SBA 8(a) Program in 2026: A Survival Guide to Federal Set-Asides After the Ultima Reset
A practical guide to qualifying for the SBA 8(a) Business Development Program in 2026 — the $850,000 personal net worth, $400,000 three-year average AGI, and $6.5 million asset caps, the post-Ultima social disadvantage standard, $7M and $4.5M sole-source thresholds, and how to survive the nine-year graduation clock without losing certification.
Sales Returns, Allowances, and Contra-Revenue Accounting: How to Record Refunds Without Inflating Your Gross Margin
A walkthrough of how to record sales returns, allowances, and discounts as contra-revenue accounts under ASC 606, including the refund liability journal entries, sales tax reversal, and the gross-margin effects most small businesses miss.
Sales Returns and Allowances: Contra-Revenue Accounting Under ASC 606
Sales returns and allowances are contra-revenue, not expenses. This guide shows the journal entries, ASC 606 refund liability and right-of-return asset, and how to estimate returns at period-end so net sales and gross margin stay honest.
The Rule of 40 for SaaS Founders: Calculation, Benchmarks, and When to Ignore It
The Rule of 40 says a healthy SaaS company's revenue growth rate plus profit margin should clear 40%. This guide covers how to calculate it, which margin metric to use, 2026 benchmarks (median score around 12%), the Rule of X variant, and when the rule does not apply.
Recording Sales Tax You Collect: A Liability, Not Revenue
Sales tax you collect belongs on the balance sheet as Sales Tax Payable, never on the income statement. Split each taxable sale into Sales Revenue and a tax liability, keep one account per jurisdiction, and reconcile so the payable zeroes out at filing time.
Recording Sales Tax You Collect: A Liability, Not Revenue
Sales tax you collect belongs to the state, not your revenue line. Here are the journal entries, the month-end reconciliation routine, and the multi-state economic nexus rules that keep your books audit-ready.
Quality of Earnings Reports: How Sellers Defend EBITDA, Survive Buyer Due Diligence, and Avoid Last-Minute Price Cuts
A Quality of Earnings (QoE) report decides whether a buyer accepts your EBITDA or re-trades the deal price. This guide breaks down the 12 add-backs buyers accept, the 8 they reject, and how the working capital peg quietly cuts seller proceeds at closing.
Quality of Earnings Reports: How Sellers Protect Their Price in a Business Sale
A Quality of Earnings report normalizes a company's earnings, reconciles them to cash, and tests every add-back. Sellers who commission their own QoE averaged a 7.4x EBITDA multiple versus 7.0x for those who did not.
Personal Use of a Company Vehicle: Imputed Income and W-2 Reporting
Personal use of a company car is taxable wages. This guide compares the three IRS valuation methods — Annual Lease Value, cents-per-mile (72.5¢ for 2026), and the $1.50 commuting rule — with worked examples and W-2 reporting steps.
Setting Up Owner's Equity Accounts: Tracking Contributions, Draws, and Retained Earnings the Right Way
Owner's equity is Assets minus Liabilities — the running total of contributions, draws, profit, and losses. This guide structures equity accounts for sole proprietors, partnerships, and LLCs, explains why draws are not expenses, and shows the year-end closing entries that keep a balance sheet in balance.
Opening Balances Done Right: Mid-Year Setup and Clearing the OBE Account
Opening Balance Equity is the suspense account accounting software creates to keep the balance sheet in balance during migration. Build a supportable opening trial balance, reconcile every account at the cutover date, then journal OBE into Retained Earnings, Owner's Capital, or Common Stock and Additional Paid-in Capital based on entity type.