Bookkeeping fundamentals and accounting tips for freelancers and small business owners. Pre-accounting, paperless bookkeeping, invoice basics, and getting started with business finances.
Break-even analysis tells you how many units, or how much revenue, you need before a month turns a profit. This guide walks the SBA formula, contribution margin, break-even in units and dollars, break-even with a profit target, and the fixed-vs-variable step most owners get wrong.
Markup divides profit by cost; margin divides it by the selling price. That one difference is why a 50% markup is only a 33% margin, and why pricing off the wrong one quietly costs you. This guide walks the formulas, both conversions, and where the margin lands on Schedule C.
