68 lines
2.4 KiB
Markdown
68 lines
2.4 KiB
Markdown
---
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title: Accounting Overview
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description: Bigcapital setup, Schedule C, COGS, livestock deaths, owner draws
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published: true
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date: 2026-04-12T00:00:00.000Z
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tags: pncfish, accounting, bigcapital
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editor: markdown
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dateCreated: 2026-04-12T00:00:00.000Z
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---
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# Accounting Overview
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## Tool: Bigcapital
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Self-hosted, open-source accounting at `accounts.netgrimoire.com` (docker5, static Caddyfile entry).
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Bigcapital handles:
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- Income entry from Square sales reports
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- Expense categorization to Schedule C lines
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- Livestock death inventory shrinkage journal entries
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- Owner draw tracking (separate from business expenses)
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## Chart of Accounts
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Mapped to **Schedule C** lines. Setup is in progress — not yet finalized.
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Key accounts to establish:
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| Account | Type | Schedule C Line |
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|---------|------|----------------|
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| Sales — Livestock | Revenue | Line 1 (Gross receipts) |
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| Sales — Supplies/Accessories | Revenue | Line 1 |
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| COGS — Livestock purchases | COGS | Line 36-39 |
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| Inventory shrinkage (deaths) | COGS adjustment | Line 39 |
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| Rent | Expense | Line 20b |
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| Utilities | Expense | Line 25 |
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| Supplies | Expense | Line 22 |
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| Advertising | Expense | Line 8 |
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| Owner draws | Equity | Not on Schedule C |
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## COGS for Livestock
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Livestock is inventory. COGS is calculated as:
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```
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Beginning Inventory + Purchases - Ending Inventory = COGS
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```
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**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.
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## Owner Draws
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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.
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## Income Entry Workflow
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1. Pull sales report from Square (weekly or monthly)
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2. Enter total sales as income in Bigcapital
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3. Categorize to appropriate revenue accounts (livestock vs. supplies/accessories)
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4. Enter any expenses paid that period (receipts, invoices)
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5. Record any livestock deaths from the Google Sheet tab as shrinkage journal entries
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## Pending
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- [ ] Finalize chart of accounts — map all accounts to Schedule C lines
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- [ ] Confirm COGS tracking method aligns with chosen inventory accounting method (FIFO vs. average cost)
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- [ ] Set up livestock death log tab in Google Sheets
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- [ ] Establish journal entry cadence for shrinkage entries
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