Goodwill is an intangible asset that arises from a business combination. When one company purchases another, the acquiring company often pays more than the value of the acquired company’s net assets. Think of it like selling a product—if you want to make a profit, you need to charge more than what the product costs to…
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Salary Survey: Ultimate Guide for Small Businesses
What Is a Salary Survey A salary survey is a benchmarking tool to help you collect and analyze employee compensation data, such as wages and benefits. These surveys are conducted with different employers to determine pay levels for specific jobs in the organization. For better data comparison, the surveys are usually carried out by region,…
10 Cash Flow Management Tips for Small Businesses
By following our 10 cash flow management tips for small business operations—including not paying bills until due, utilizing a credit line, investing excess cash, establishing a petty cash fund, and determining your cash conversion cycle—you can meet short- and long-term cash requirements and optimize return on idle funds. Cash flow management is important for all…
What Is an Outstanding Check on a Bank Reconciliation?
An outstanding check on a bank reconciliation is a check that has been written and recorded in your company’s books but has not yet cleared the bank. Essentially, the cash balance has been reduced, but the bank has not deducted the amount from your account balance. This discrepancy occurs because of the time gap between…
What Is Positive Pay and How Does It Protect Your Business Account?
Positive pay is a powerful automated anti-fraud tool that protects businesses and banks from unauthorized checks being paid. Banks use it to quickly analyze and match checks against a file submitted by the business to confirm the account number, check number, and check amount. If the check presented for payment matches the file exactly, it’s…
What Is a Registered Agent? How & Why to Get One
A business’ registered agent (RA) is the official contact for receiving important documents—a summons, subpoena, or registration renewal. While every state requires a business to have a registered agent, regulations may differ. Several states allow the business to be its own RA, but others don’t. If you’d like to hire a company to serve as…
Factor Rate: What It Is & How to Calculate
Factor rates are used for alternative forms of financing, commonly associated with short-term loans or merchant cash advances. It differs from traditional interest rates, where instead of being expressed as a percentage, a factor rate is expressed as a decimal and represents the total cost of repayment. Essentially, a factor rate represents the total cost…
Electrician Insurance: Cost & Coverage
Electrician insurance is a policy, or combination of policies, that protects your business from financial loss from claims of third-party property damage, workplace injuries, damaged business property, or loss of business income. Some license boards require electrical liability insurance like general liability insurance, while most states will require workers’ comp if your business has employees….