A business certificate of deposit (CD) is a time-deposit savings account that offers fixed interest for a set period. This low-risk option helps businesses earn competitive interest and protect their funds since most CDs are insured by the Federal Deposit Insured Corp (FDIC). Compared to other traditional savings and money market accounts, CDs tend to…
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What are Labor Law Posters? Federal & State Compliance for Employers
Labor law posters are graphics that the federal and local governments require you to display in your business area. These contain information to help your employees understand their rights when it comes to wages, work conditions, and compensation for accidents or unemployment—among other things. Failure to follow labor poster compliance puts you at risk of…
What Is a Private Money Lender? A Beginner’s Guide
A private money lender offers financing outside of traditional lending institutions and is typically used to assist in the purchase or refinance of a real estate investment. There are various types of lenders, such as friends and family, hard money lenders, mortgage companies, and other private lending firms. Utilizing these lenders offers financing opportunities that…
What Is Employee Engagement & Why Is It Important?
Employee engagement describes the level at which an employee is connected to their work and the organization. Having high engagement with employees results in reduced turnover, improved productivity and work performance, and increased overall profitability. To keep employees engaged, small businesses can implement strategies like regular feedback sessions, recognizing and rewarding contributions, and fostering a…
What Is Inventory Reserve? Purpose & Use in Accounting
Inventory reserves are estimates for inventory losses due to physical deterioration, obsolescence, theft, and other unforeseen causes—they are not the actual cost of inventory deemed worthless. Businesses using either the last in, first out (LIFO) method or retail inventory method and complying with the US GAAP should make appropriate inventory reserves. The inventory reserve account…
What Is a High-risk Merchant?
A merchant is considered “high-risk” when it runs a business that is highly susceptible to fraud and chargebacks. This can be due to the industry they belong to, the products or services they provide, or a history of high chargeback claims. When this happens, merchants go through a more rigorous process before being approved for…
What Does Code 150 Mean on an IRS Transcript?
Code 150 on an IRS transcript means that the IRS has accepted your return for processing and has created a current-year file for you. Transcript code (TC) 150 may be shown with a dollar amount, representing the tax liability assessed. The tax assessment does not automatically mean you will owe the IRS money, as credits…
What Is Code 766 on an IRS Transcript?
When transcript code (TC) 766 appears on an IRS transcript, it generally means a refundable credit has been applied to a taxpayer’s account. Refundable credits can generate refunds even when no tax is owed on the return. Sometimes, the transcript description for code 766 will say “tax relief credit”—and since tax relief is government assistance…