Customer service is the support you provide across the buyer’s journey from initial contact throughout the customer’s lifetime of doing business with your company. Customer service includes phone support, in-person assistance, live chat, email, and other means of communication. Its basic principles are understanding customer needs, processing requests, and resolving concerns promptly and to their…
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Depreciation: What It Is & How It Works [+ Examples]
Depreciation in accounting and bookkeeping is the process of allocating the cost of a fixed asset over the useful life of the asset. The cost of the asset should be deducted over the same period that the asset is used to generate income instead of deducting a large expense when it’s purchased. This provides a…
What Is Debt-to-Income Ratio & How to Calculate It
Debt-to-income (DTI) ratio is a measure of your monthly debt obligations in relation to your monthly income. It’s calculated by taking the total dollar amount of your monthly debt payments, and then dividing it by your gross monthly income. Lenders often evaluate your DTI ratio to determine your eligibility for a loan and how much…
A Simple Explanation of Section 1245 Property With Examples
Section 1245 property is the depreciable personal property—like machinery, equipment, and furniture—that you have used in your business for over one year. It’s a subclass of section 1231 property, but unlike other 1231 property, gain on the sale of 1245 property must be recaptured as ordinary income to the extent that depreciation was claimed on…
State & Federal Labor Laws Employers Need to Know in 2024
Federal labor laws and related state labor laws affect all businesses with employees—even more so for companies with at least 50 workers. They govern workforce practices and areas such as overtime, minimum wage, on-call pay, employee breaks, sick leave, hiring minors, and employment discrimination. Labor laws provide workers with protections and contain enforcement and reporting…
Fixed Asset Roll Forward: Template & Explanation
A fixed asset roll forward is an accounting process used to track changes in the fixed assets and accumulated depreciation accounts from the beginning to end of the year. It shows all fixed asset acquisitions, fixed asset disposals, and depreciation for the year, thus reconciling the beginning balance sheet amounts to the ending balance sheet…
Pre-employment Assessment: Types & How to Conduct One
A pre-employment assessment is a tool that companies use to determine a candidate’s ability to perform the core duties of the role they’re hiring for. Many organizations have shifted to this hiring approach, moving away from or in addition to degree requirements. Besides looking into both hard and soft skills, these assessment tests allow you…
What Is Business Ethics?
Ethics is a philosophical term that refers to the study of goodness and right action. Business ethics is the practice of applying ethics to business operations. Business ethics typically involve businesses holding themselves accountable to make business and operational decisions that support fair, transparent, and honest business practices. But business ethics is not one-size-fits-all; read…