Netgrimoire/Periphery/PNC-Fish/Accounting/Overview.md

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