Accounting,
operated
in real time.

Every quarter we review our standard chart of accounts template — the one we hand to new clients on day one. This quarter, we made the most significant structural change in three years: we collapsed 14 expense categories down to 9.

It sounds like a small thing. It isn't.

Why we had 14 categories in the first place

The original structure was built for granularity. The idea was that more detail equals more insight. In practice, what we got was more noise. Categories like Office Supplies, Printing & Postage, and Small Equipment each had fewer than 12 transactions per year across most of our clients. They were too thin to trend, too small to matter, and too numerous to scan.

The 9 categories we landed on

What changed in the P&L

Margin analysis became readable at a glance. When you have 9 lines instead of 14, you can see the shape of the business — where the weight sits, what's growing, what's compressing gross margin. The signal-to-noise ratio improved immediately.

We also noticed that month-over-month variance conversations got shorter. Fewer categories means fewer "what's this line?" questions and more time on actual decisions.

If you want the updated chart of accounts template, reply to this note and we'll send it over.

In week one with every new client, we hand them a 13-week cash flow model. Not a full financial model. Not a three-statement build. Just 13 weeks of cash — in, out, and what's left.

It's the single most useful document we've found for running a small business. Here's how it works.

Why 13 weeks

Thirteen weeks is one quarter. It's long enough to see patterns and short enough to be accurate. Beyond 13 weeks, cash forecasts for most small businesses become guesswork dressed up as precision. Within 13 weeks, you're working with real data: known invoices, fixed costs, scheduled payments.

The three inputs

The three assumptions we never let drift

1. Collection timing, not invoice date. Revenue is when you invoice. Cash is when you collect. We always model based on historical days-sales-outstanding, not optimistic payment terms.

2. Payroll is sacred. It goes in first, non-negotiable, before any other outflow. If payroll is at risk, everything else is secondary.

3. The model updates every Monday. A cash model that isn't updated weekly is a historical document, not a planning tool. We build the Monday update into the client's weekly rhythm from day one.

The template is a simple spreadsheet. No macros, no complexity. Ask us for a copy.

Every year-end, small business owners face the same question: should I buy that piece of equipment before December 31st, and how do I write it off? In 2026, the answer got more nuanced. Here's the decision matrix we're using with clients.

What each provision does

Section 179 lets you deduct the full cost of qualifying equipment in the year it's placed in service, up to a dollar limit. For 2026, the deduction limit is $1,220,000, with a phase-out beginning at $3,050,000 of total equipment purchases.

Bonus depreciation allows an additional first-year deduction on qualifying property. The key change for 2026: bonus depreciation dropped to 40% (down from 60% in 2025, and 100% in 2022). This step-down was scheduled under the Tax Cuts and Jobs Act and is continuing as planned.

The decision matrix

The one thing most owners miss

Section 179 cannot create a loss. If your business income is $80,000 and you buy $120,000 of equipment, your Section 179 deduction is capped at $80,000. The remaining $40,000 carries forward. Bonus depreciation has no such restriction — it can push you into a net operating loss, which may be carried forward to offset future income.

For most profitable small businesses, the right answer in 2026 is Section 179 first, bonus depreciation second. But run the numbers with your accountant before December — the timing of when equipment is "placed in service" matters more than when it's purchased.

This is general information, not tax advice. Your situation may differ — talk to us before making year-end equipment decisions.