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What Is Payroll Fraud + How to Detect & Prevent It

Payroll fraud can be detrimental for all businesses in all industries, but particularly small businesses. Understanding how to detect payroll fraud and what can be done to prevent it can help your business avoid detrimental losses.

By May 6, 2024 | Human Resources, What is

Payroll fraud occurs when a worker cheats the system to get a higher paycheck. Small businesses are more likely to be at risk than larger ones because they place a higher level of trust in their employees and often have fewer safeguards in place. This can result in tax payments not being made or employees…

What Is Debt Service Coverage Ratio & How to Calculate It

By May 6, 2024 | Financing, What is

The debt service coverage ratio (DSCR), or debt coverage ratio for short, is a financial measure of a company’s ability to pay debts from its cash flow. Here is the DSCR formula: DSCR = Annual Net Operating Income Annual Debt Obligations In general, a DSCR of 1.25 or greater is viewed favorably when it comes…

Taxable & Non-Taxable Fringe Benefits: A Small Business Guide

By May 2, 2024 | Human Resources, What is

Fringe benefits are company-paid incentives you offer employees above and beyond their regular salary. They can include traditional employee benefits (such as health insurance and retirement benefits) as long as the employer is contributing to the costs, thereby saving the employee money. Fringe benefits also include less traditional benefits like moving expenses, adoption assistance, or…

What To Know About Getting a Business Loan Cosigner

By May 2, 2024 | Financing, What is

A business loan cosigner is an individual who promises to make payments on the loan if the other borrower(s) are unable to do so. Getting a cosigner can improve your odds of landing a loan approval. However, you should be aware of the risks involved with doing this. For instance, missing a payment on a…

What Is a Toll-free Number & How Does It Work?

By April 30, 2024 | Office Technology, What is

Toll-free numbers are telephone numbers distinguished by a three-digit prefix (e.g., 800 and 885), where the recipient covers the cost of the call rather than the caller. Many businesses opt for toll-free numbers for their credibility and convenience, especially since prospective customers can reach your team without worrying about call charges. This guide will explore…

What is Imputed Income? A Quick Guide for Small Businesses

By April 30, 2024 | Human Resources, What is

Imputed income is the value of non-cash compensation that must be included as part of an employee’s taxable income. It’s crucial for small business owners to understand what imputed income is, as it directly affects payroll and tax reporting. By grasping what imputed income encompasses, small business owners can ensure compliance with tax laws, avoiding…

13 Important HR Metrics & How to Measure Them (+ Examples)

By April 30, 2024 | Human Resources, What is

Employers use human resources (HR) metrics to measure how their human capital-related costs contribute to overall business performance. These can also be used to establish a baseline for your business to track productivity, revenue, training, and more. As your numbers increase (or decrease) around this baseline, you can determine steps to take, as necessary, to…

What is a Purchase Order Number? Key Components & Importance

By April 29, 2024 | Accounting, What is

A purchase order (PO) number is a unique identifier assigned to a PO document. It simplifies tracking the PO throughout the process, from creation to fulfillment, for both the buyer and seller. Also, it aids in recordkeeping for accounting and auditing purposes. By referencing the PO number on communications, invoices, and other documents, you can…