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…
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What Is Business Interruption Insurance? How It Works & Coverage
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?
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…
Livestream Shopping: Popularity & Profitability
Livestream shopping, also called live commerce or simply live shopping, is a marketing strategy that retail businesses can use to promote and sell products via live online video, usually through a social media platform. We guide you through what it is, how it works, the types of live shopping events you can do, and tips…
What Is a Convertible Note? How It Works & Where to Get One
A convertible note is a short-term financial document that allows a business to receive cash in exchange for equity in a company. This agreement is utilized by startups to receive support from angel investors, venture capitalists, or other types of private investors. Investors provide funding with the assumption that those funds will be repaid or…
What Are Current Liabilities? How to Calculate Them [+ Calculator]
A current liability is any financial obligation that has an amount due within the next 12 months. It can be found on your company’s balance sheet and can include loan payments, payroll expenses, and accounts payable (A/P). It’s an important figure to know because it will help ensure that you have enough assets to satisfy…
What Is an Installment Sale & How Does It Work?
An installment sale is a transaction where one or more payments occur after the end of the seller’s tax year and gain may be deferred to future years.
Installment sales are often used for the sale of a business and for real estate transactions. This sale structure is often chosen for the significant tax benefits to the seller and the unencumbered cash flow afforded to the buyer. How Does an Installment Sale Work? Without the installment sale rules, a gain or loss would…
Ethical Sourcing: A Small Business Guide
Ethical sourcing practices offer small businesses a pathway to enhance reputation, increase sales, boost employee satisfaction, and ensure regulatory compliance.
There is a growing trend towards labeling business products as “ethically sourced”—but what does that term really mean? Often used interchangeably with “sustainably sourced” or “responsibly sourced”, ethically sourced refers to components of the supply chain that are obtained in an ethical way. Businesses that have ethically sourced products and services do so because of…