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What is

What Is a Perpetual Inventory System & When Is It Used? (+ Example)

A perpetual inventory system is a method of continuously tracking inventory levels and transactions in real time.

By June 19, 2024 | Accounting, What is

Perpetual inventory systems record transactions—like inventory purchases, sales, returns, and adjustments—as they occur. This is unlike periodic inventory systems, which depend on physical inventory counts and end-of-period adjustments Perpetual inventory systems also provide up-to-date inventory data at any given moment and enhance accuracy, making it a useful tool for manufacturers, retailers, and ecommerce businesses. How…

What a Cash-basis Taxpayer Is & How Cash-basis Accounting Works

A cash-basis taxpayer is an individual or tax-paying entity that accounts for their business activity using the cash-basis method of accounting.

By June 13, 2024 | Taxes, What is

Under cash-basis accounting, the taxpayer records income once payment is received and records expenses when payments are made. When noncash payments are received as income, the amount recorded is the fair market value (FMV) of the property received. Payments made with a bank credit card are deductible as cash payments, whereas payments made with a…

What Is Workforce Management? How It Works + Best Practices

By June 13, 2024 | Human Resources, What is

Workforce management is a set of organizational processes that help maximize employees’ competency and performance levels by placing them in roles where they can fully utilize their skills and talents. It involves effectively forecasting labor requirements as well as creating and managing staff schedules to accomplish specific tasks on a daily basis. It also integrates…

What Is Circular Fashion? A Retailer’s Guide

By June 11, 2024 | Ecommerce, Retail, What is

Circular fashion involves designing, manufacturing, and using clothing and fashion products with the goal of extending their life cycles and minimizing waste. On the producer’s end, this can mean sourcing sustainable materials or reusing or recycling materials back into the production phase, rather than being discarded as waste and removed from the process entirely. A…

Retailer’s Guide to RFID Inventory Management

By June 11, 2024 | Retail, What is

Radio-frequency identification (RFID) is technology that uses electromagnetic fields to identify, track, and transmit data—such as the specific item number, batch number, or item production date—via a tag that is attached to an item. The reader device displays all of this information, which is useful for inventory management tasks such as tracking stock quantities and…

What Is Business Interruption Insurance? How It Works & Coverage

By June 10, 2024 | Insurance, What is

Business interruption coverage, sometimes referred to as loss of business income insurance, is small business insurance that provides your business with monetary compensation when—because of a covered loss—your business cannot operate. The coverage is normally part of a business owner’s policy (BOP) and is very rarely available as a standalone policy. No matter how hard…

What is 3-way Matching in Accounts Payable & Why Use It?

By June 7, 2024 | Accounting, What is

A 3-way matching in accounts payable (A/P) management is the process of matching three documents—purchase order (PO), receiving report (RR), and supplier invoice—to ensure that a purchase is correct and legitimate before making a payment. Businesses use it to detect and prevent fraud, trigger the vendor payment process, save time and money, maintain positive relationships…