She Thought She Made 42% Margin. The Books Said 26%.
Freight, duties, 3PL fees and returns were being expensed as paid instead of capitalised into inventory. Two years of product decisions had been made against a margin that was never real.
Her First $195,000 Year Came With a $51,854 Tax Bill She Hadn't Saved For
Nobody had ever withheld anything for her before. She billed $195,000, spent like someone earning $195,000, and found out in April that self-employment works differently.
Nine Months Behind on the Books: How One Contractor Got Current and What It Uncovered
He called in March with nine months of unreconciled books, two years of missed estimated payments, and an IRS notice he hadn't opened. The cleanup took six weeks. What it uncovered took the rest of the year.