A sales order (SO) is a document that confirms the customer’s order and starts the order fulfillment process. When an order is placed, the business must check if it has enough inventory to fulfill it or adequate workforce and supplies to perform the service. If it can accommodate the order, the person in charge should…
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What Is Listed Property & Allowable Depreciation
Listed property consists of items that can be used for business and personal purposes. They include the following categories: Passenger vehicles are defined as any four-wheeled vehicle intended for use on public streets and weighing no more than 6,000 pounds. Equipment designated for entertainment and recreational use, such as photography and audio/visual equipment. Other assets…
What Is Collateral Coverage Ratio? How It Works [+ Calculator]
The collateral coverage ratio (CCR) is a calculation that compares the discounted collateral value (DCV) with the total loan amount to ensure proper coverage. It is calculated by dividing the DCV provided by the amount borrowed. It can be used by lenders to evaluate the maximum loan limit eligibility of a borrower, and most lenders…
What Is a Press Release? Definition, Benefits, How They Work
A press release (also called a “PR release” or “news release”) is an announcement that delivers newsworthy information to journalists and the media that they can expand into full news stories. Press releases are important to small businesses and organizations that want to develop media relationships, improve website SEO, and cultivate positive publicity and brand…
Purchase Order Financing: What It Is & How It Works
Purchase order (PO) financing is a form of short-term financing that involves a creditor paying your supplier for goods or services to be delivered to your customers.
For businesses without the resources to fulfill orders, PO financing can help avoid turning away customers or processing delays if you have insufficient funds or limited stock. Take note that it requires that you sell finished goods to either a business (B2B) or the government (B2G). The process is simple—the financing company reviews the order,…
What Does Code 806 Mean on an IRS Transcript?
IRS Code 806 represents the tax withheld during the year on your behalf, generally on Form W-2 or 1099. Tax withholding is typically done by an employer or brokerage account administrator and acts as a prepayment of the tax that the IRS may assess when your tax return is filed. The Code 806 amount on…
Quick Ratio: What It Is & How to Calculate It [+ Calculator]
The quick ratio, also known as the acid-test ratio, calculates a company’s ability to cover its current liabilities by means of its current assets. It is a liquidity ratio used by a company’s stakeholders, investors, and lenders and takes a company’s quick assets—which are current assets minus inventory and long-term receivables—and divides them by current…
Certificate of Liability Insurance: What It Is & How to Request One
A certificate of insurance (COI) is a document that provides proof of insurance. It includes policy details like your specific coverage, limits, and effective dates, but it is not an insurance contract. Companies often require businesses they partner with to carry liability insurance because they don’t want to risk being held solely responsible. In those…