---
title: Accounting Overview
description: Bigcapital setup, Schedule C, COGS, livestock deaths, owner draws
published: true
date: 2026-04-12T00:00:00.000Z
tags: pncfish, accounting, bigcapital
editor: markdown
dateCreated: 2026-04-12T00:00:00.000Z
---

# Accounting Overview

## Tool: Bigcapital

Self-hosted, open-source accounting at `accounts.netgrimoire.com` (docker5, static Caddyfile entry).

Bigcapital handles:
- Income entry from Square sales reports
- Expense categorization to Schedule C lines
- Livestock death inventory shrinkage journal entries
- Owner draw tracking (separate from business expenses)

## Chart of Accounts

Mapped to **Schedule C** lines. Setup is in progress — not yet finalized.

Key accounts to establish:

| Account | Type | Schedule C Line |
|---------|------|----------------|
| Sales — Livestock | Revenue | Line 1 (Gross receipts) |
| Sales — Supplies/Accessories | Revenue | Line 1 |
| COGS — Livestock purchases | COGS | Line 36-39 |
| Inventory shrinkage (deaths) | COGS adjustment | Line 39 |
| Rent | Expense | Line 20b |
| Utilities | Expense | Line 25 |
| Supplies | Expense | Line 22 |
| Advertising | Expense | Line 8 |
| Owner draws | Equity | Not on Schedule C |

## COGS for Livestock

Livestock is inventory. COGS is calculated as:

```
Beginning Inventory + Purchases - Ending Inventory = COGS
```

**Livestock deaths** reduce ending inventory. Track in dedicated Google Sheet tab, then enter as inventory shrinkage journal entries in Bigcapital. Do not process deaths through Square.

## Owner Draws

Owner draws are equity withdrawals — not business expenses. They do not appear on Schedule C and must not be categorized as expenses. Record separately in Bigcapital as equity/drawing transactions.

## Income Entry Workflow

1. Pull sales report from Square (weekly or monthly)
2. Enter total sales as income in Bigcapital
3. Categorize to appropriate revenue accounts (livestock vs. supplies/accessories)
4. Enter any expenses paid that period (receipts, invoices)
5. Record any livestock deaths from the Google Sheet tab as shrinkage journal entries

## Pending

- [ ] Finalize chart of accounts — map all accounts to Schedule C lines
- [ ] Confirm COGS tracking method aligns with chosen inventory accounting method (FIFO vs. average cost)
- [ ] Set up livestock death log tab in Google Sheets
- [ ] Establish journal entry cadence for shrinkage entries