Guides

Journal Entries: 5 Patterns Every Business Owner Uses

How to create journal entries for revenue, expenses, owner draws, transfers, and credit card charges, with step-by-step examples and the draft-to-posted workflow.

Debits and Credits Demystified

What debits and credits really mean, why debit isn't 'minus,' and the DEALER mnemonic that makes every journal entry obvious.

Single Entry vs. Double Entry Accounting

Single entry vs double entry bookkeeping: how each system works, where single entry breaks down, and which method your business actually needs.

How to Read Financial Statements Like a CFO

A beginner's guide to understanding financial statements: income statements, balance sheets, and cash flow, with examples, red flags, and a monthly review checklist for founders.

Profit First

Why Revenue minus Profit equals Expenses works better than the traditional formula: the multi-account system and behavioral economics behind Profit First.

1. 1The Framework That Flips Business Finance
2. 2Setting Up Your Allocations
3. 3The Twice-Monthly Rhythm

Form W-9: What It Is and When to Collect It

Form W-9 is how a business collects a contractor's or vendor's taxpayer information before paying them. Here's what the form does, who has to fill one out, when to collect it, and how to use the information to file 1099s correctly.

The Home Office Deduction: Who Qualifies, How to Calculate It, and What to Keep

A practical guide to the home office deduction: the two qualification tests, the simplified vs. actual method, what evidence the IRS expects, and the entity-specific rules for sole proprietors, partnerships, and S-Corp owners.

2026 Tax Brackets, IRA, 401(k), and HSA Limits: What You Need to Know

Federal tax brackets for 2026, plus contribution limits and tax benefits for Traditional IRA, Roth IRA, 401(k), Roth 401(k), and HSA accounts, including deduction rules and income phase-outs.

Can You Claim a Parent as a Dependent? Rules, Tests, and Tax Benefits

How to claim a parent as a dependent on your tax return, including the IRS qualifying relative tests, income and support thresholds, the multiple support agreement for siblings, and the tax benefits you unlock.

Accountable Plans: How to Reimburse Yourself (and Employees) Tax-Free

An accountable plan lets your business reimburse you (and your team) for home office, mileage, cell phone, and travel expenses tax-free. Here's the IRS rule, who needs one, and how to set it up.

The Vehicle & Mileage Deduction: How to Pick the Method That Pays You the Most

A practical guide to deducting business vehicle expenses: who qualifies, the standard mileage rate vs. actual expense method, the heavy-SUV strategy, the records the IRS requires, and how to choose the method that maximizes your deduction every year.

Self-Employment Tax: What It Is, How It Compares to W-2, and How to Pay Less

A plain-English guide to self-employment tax: what it is, how it really compares to W-2 payroll tax (the 'double FICA' framing isn't quite right), how much you owe at common income levels, and four ways to legally lower your tax bill. Built for freelancers, side-hustlers, and small business owners, not CPAs.

The Augusta Rule: Rent Your Home to Your Business Tax-Free

Learn how IRC Section 280A(g) lets business owners rent their home for up to 14 days per year without reporting the income, and what your business needs to do it right.

2025 Tax Brackets, IRA, 401(k), and HSA Limits: What You Need to Know

Federal tax brackets for 2025, plus contribution limits and tax benefits for Traditional IRA, Roth IRA, 401(k), Roth 401(k), and HSA accounts, including deduction rules and income phase-outs.

The C-Corporation: When It's the Right Trade-off

A practical guide to C-Corps for founders: why VC-backed companies are almost always Delaware C-Corps, how double taxation actually works, the Section 1202 / QSBS perk that gives founders up to $10M tax-free, when to choose Delaware vs. your home state, and when a C-Corp is the wrong choice.

Choosing a Business Entity: A Decision Guide

A plain-English guide to choosing between sole proprietorship, partnership, LLC, S-Corp election, and C-Corp. The five dimensions you're actually choosing between, a decision tree, and the four mistakes that cost founders the most.

The LLC: How It Works and When to Use It

A practical guide to the LLC: what it actually is at the state level, how single-member and multi-member LLCs differ, the four tax options (default pass-through, S-Corp, C-Corp), the liability shield (what it does and doesn't protect), the operating agreement nobody talks about, and a worked example of a two-partner consulting LLC.

The S-Corp Election: How and When It Saves Money

A practical guide to the S-Corp election: what it actually is (a tax election, not an entity), when the math works, the reasonable-salary problem, the California exception, and a worked example showing $7,000 to $10,000 in annual savings at typical small-business profit levels.

Sole Proprietorships and General Partnerships

A practical guide to the two cheapest, most common, and most dangerous default entities: sole proprietorships and general partnerships. What each one is, when they make sense (briefly), the accidental-partnership trap that catches thousands of people a year, and exactly when to upgrade to an LLC.

Rental Property Bookkeeping: A Complete Guide for Landlords

How to set up your books for a rental property LLC, record rent and expenses, handle security deposits, distinguish repairs from capital improvements, and run month-end reports, with step-by-step journal entries in Sedna.