The Profitjets Blog
Finance Writing for People Running the Business
Practical articles on bookkeeping, accounting, tax, payroll and financial strategy, written for founders and operators rather than for other accountants.
Start here
What is Bookkeeping: A Step-by-Step Guide
What bookkeeping covers, how it differs from accounting, and the five-step process behind a clean set of books.
The library
Browse the articles
Filter by the area you are working on.
Bookkeeping and Accounting: Key Differences Explained
What each function actually does, the ten principles they share, and how to tell which one your business needs first.
Cash Basis vs Accrual Accounting: Which is Right for Your Business?
The IRS requirements, the trade-offs, and how to decide which basis to report on.
Cash Flow Analysis: How to Read and Use Your Cash Flow Statement
The Three Sections of the Cash Flow Statement and Operating Activities: Indirect vs Direct Method.
Cash Flow Management: Strategies to Keep Your Business Solvent
Why Profitable Businesses Run Out of Cash, The Rolling 13-Week Cash Flow Forecast, and Cash Flow Levers.
Cash vs Accrual Accounting: Which Method Is Right for Your Business?
How the two methods differ, what each is good for, and which one you are allowed to use.
Common Accounting Terms Explained: A Beginner's Guide
The vocabulary an owner needs, defined in plain language rather than textbook terms.
Comptroller vs Controller: Key Differences
Two titles for a similar job, and the sector difference that separates them.
Cost of Goods Sold (COGS): How to Calculate It and Why It Matters
The formula, worked both ways, and what belongs in the cost.
Current Ratio and Quick Ratio: How to Measure Short-Term Liquidity
Current Ratio, Quick Ratio (Acid Test), and Why the Quick Ratio Matters More for Some Businesses.
Customer Acquisition Cost (CAC) for Startups: How to Calculate and Reduce It
CAC Formula, Blended vs Channel-Specific CAC, and CAC Payback Period.
Customer Lifetime Value (LTV): Formula, Calculator, and How to Improve It
LTV Formulas, LTV Calculator: Key Inputs, and LTV:CAC Ratio Benchmarks.
Debit vs Credit: A Simplified Guide to Accounting Basics
What debits and credits actually mean, which accounts they move, and the myths.
Deferred Tax Asset vs Liability: Major Differences
Why book profit and taxable profit differ, and what that leaves on the balance sheet.
Delaware LLC vs Wyoming LLC: Where Should You Incorporate?
Cost, privacy and law, and why your operating state usually decides.
Depreciation Formula: Methods, Examples, and IRS Rules
The Four Depreciation Methods, MACRS: The IRS Method for US Tax Purposes, and Section 179 vs Bonus Depreciation.
Differentiating Financial Accounting vs Managerial Accounting
Who each one is for, what it produces, and why most businesses need both.
Direct Cost vs Indirect Cost: Key Differences
Which is which, how to allocate, and why pricing depends on it.
Do's and Don'ts to Succeed at Offshore Accounting
What works and what fails when accounting moves offshore, from someone who runs it.
E-Commerce Accounting: Complete Guide for Online Sellers
Key Accounting Challenges for E-Commerce Sellers, Sales Tax Nexus After Wayfair, and Chart of Accounts for E-Commerce.
FIFO Inventory Method: How It Works, Examples, and When to Use It
How FIFO Works, FIFO Example with Three Purchase Layers, and FIFO in Rising vs Falling Prices.
Finance vs Accounting: Key Differences Explained
Where the two functions differ in focus, timeframe and what they are asked to deliver.
GAAP vs IFRS: Key Differences in Accounting Standards
Where the two standards diverge, and when the difference actually costs you something.
Gross Margin vs Gross Profit: Key Differences Explained
An amount and a percentage, and why the split matters.
Gross Revenue vs Cash Flow: Why They Are Different and Why It Matters
Why the two differ, and how to see a cash problem coming.
What we write about
Eight topics we come back to
Pick a topic and the library above filters to it.
Bookkeeping
Clean books, reconciliations, chart of accounts and month-end close.
Accounting
Close process, financial statements, cash against accrual, and reporting that gets used.
Tax
Preparation, planning, entity choice, deductions, quarterly estimates and the IRS forms behind them.
CFO
Forecasting, cash flow, fundraising readiness and the executive roles founders confuse.
Payroll
Withholding, payroll taxes, W-2s and 1099s, and multi-state teams.
Metrics
The ratios and statements that tell you what is actually happening in the business.
Software
QuickBooks, Xero, NetSuite and the tools that feed them.
Business Finance
Entity formation, banking, budgeting, funding and getting the finances in order.
Would You Rather We Just Did It?
Reading about reconciliation is useful. Not having to do it is better.