A RACI chart, a type of responsibility assignment matrix (RAM), is a visual tool for defining team members’ responsibilities on specific tasks or outputs. To understand better what a RACI chart is, picture a diagram in a table format. The first column enumerates the project assignments, and the rest of the columns reflect the different…
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What Is an Accrued Expense and the Required Journal Entry?
An accrued expense is a current liability used to record expenses that have been incurred but not yet paid. In accounting, expenses are recognized when they are incurred, not necessarily when they are paid. Therefore, if a company has received goods and services but has not yet paid for them by the end of an…
What Is MOQ? Retailers’ Guide to Minimum Order Quantities
A minimum order quantity (MOQ) is a sales strategy used by wholesalers and other B2B suppliers in which they set a minimum number of products they will sell in a single order. For example, a clothing supplier may require that retailers purchase a minimum of 100 T-shirts per order, not allowing them to purchase any…
Business Credit Report: What It Is & How To Read It
A business credit report contains information about your company’s finances and debt payment history. It can include things like recent applications for credit, details of your current credit account balances, and liens against your company. Many lenders review business credit reports in determining whether to approve loan applications. The information in your report also determines…
How To Determine the Useful Life of an Asset for Tax & GAAP
Determining the useful life of an asset is a matter of judgment. No formula can provide a quantifiable way to determine useful life; instead, the business may refer to IRS Publication 946 or Accounting Standards Codification 350 for guidance. If you want a quick and easy way to determine useful life, the IRS provides standard…
What Is Lean Project Management? Benefits & When to Use It
Lean project management is the process of delivering value to the customer and minimizing waste. It is a subset of the larger agile project management framework, developed primarily for manufacturing to eliminate inefficiencies from work processes. Proper application of the lean methodology results in higher customer satisfaction, lower costs, and enhanced product quality. Discover what…
Internal Recruitment: What It Is, Benefits & Tips
Internal recruitment refers to the process of filling job vacancies within an organization by hiring from among the existing employees, rather than recruiting from outside. It is a talent acquisition strategy used by companies to leverage their current talent pool when sourcing candidates for open roles. The most common types include promotions, transfers, and internal…
What Is Click-to-Dial? Benefits for Small Businesses
Click-to-dial, sometimes called click-to-call, refers to the technology that allows a user to initiate a call by clicking a button or a text indicating a phone number. Click-to-call buttons may be placed on a website, such as on product pages, enabling web visitors to click the button and instantly connect to a business without keying…