The common risks associated with owning a rental property are protected by vacation rental insurance. This policy is similar to a homeowner’s policy: it provides coverage for the structure, contents, and liability, plus income loss protection. Vacation rental policies can range from $1,740 to $2,820 a year for a small, single-family home. For a quick…
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What Is Direct Inward Dialing (DID)? Benefits & How to Get Yours
Direct inward dialing (DID) routes inbound calls directly to a specific phone or extension within a company instead of going through automated menus. Businesses purchase DID numbers from a service provider and then assign them to users without requiring separate phone lines for each. With a DID number, companies streamline the caller experience by connecting…
What Is Penetration Pricing? Complete Guide + Examples
Penetration pricing is a strategy that sets lower initial prices for products or services, with the goal of quickly acquiring a market share and customer base.
Penetration pricing is a method used by businesses entering a market with a new product or service. It’s characterized by offering significantly lower prices compared to competitors at first, then strategically increasing prices to a more sustainable level. It’s particularly effective in competitive markets, enabling businesses to stand out among established brands and capture consumer…
What is Form 2220 (+Example)
Form 2220, used by corporations, calculates the underpayment penalty (if any) at a predetermined interest rate from the time at which a quarterly payment was due until it was paid or the due date of the return, if earlier. Corporations are expected to pay the IRS any income tax due throughout the year if the…
What Is Fixed Asset Turnover Ratio (+ Example)
The fixed asset turnover ratio, also known as the FAT ratio, is a financial metric that measures how efficiently a company uses its fixed assets to generate sales. In other words, it tells you how much revenue a company gets for every dollar invested in fixed assets. However, a high FAT ratio doesn’t necessarily translate…
What Is Form 7205 (+ Example)
IRS Form 7205 is used to claim a deduction for energy-efficient commercial buildings placed in service during the current tax year. This deduction, also known as the section 179D deduction, is available to property owners and designers who add energy-efficient property to commercial buildings. To take the deduction, property owners must verify that property modifications…
What Is a Suspicious Activity Report (SAR)?
A suspicious activity report (SAR) is a document that banks must file with the Financial Crimes Enforcement Network (FinCEN) when they suspect transactions that might indicate illegal activities. These illicit activities can include money laundering and tax evasion. Banks file a SAR when customers exceed certain transaction amount thresholds, have strange deposit patterns, or have…
What Is Accounts Receivable Financing & How Does It Work?
Accounts receivable (A/R) financing, sometimes referred to as invoice financing, can provide your business with funds if you have unpaid invoices you’ve issued to customers. This can be helpful for companies that have a large amount of earned revenue that is yet to be received. It’s usually possible to get up to $10 million in…