A business credit report contains information about your company’s finances and debt payment history. It can include things like recent applications for credit, details of your current credit account balances, and liens against your company. Many lenders review business credit reports in determining whether to approve loan applications. The information in your report also determines…
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How To Determine the Useful Life of an Asset for Tax & GAAP
Determining the useful life of an asset is a matter of judgment. No formula can provide a quantifiable way to determine useful life; instead, the business may refer to IRS Publication 946 or Accounting Standards Codification 350 for guidance. If you want a quick and easy way to determine useful life, the IRS provides standard…
What Is Lean Project Management? Benefits & When to Use It
Lean project management is the process of delivering value to the customer and minimizing waste. It is a subset of the larger agile project management framework, developed primarily for manufacturing to eliminate inefficiencies from work processes. Proper application of the lean methodology results in higher customer satisfaction, lower costs, and enhanced product quality. Discover what…
Internal Recruitment: What It Is, Benefits & Tips
Internal recruitment refers to the process of filling job vacancies within an organization by hiring from among the existing employees, rather than recruiting from outside. It is a talent acquisition strategy used by companies to leverage their current talent pool when sourcing candidates for open roles. The most common types include promotions, transfers, and internal…
What Is Click-to-Dial? Benefits for Small Businesses
Click-to-dial, sometimes called click-to-call, refers to the technology that allows a user to initiate a call by clicking a button or a text indicating a phone number. Click-to-call buttons may be placed on a website, such as on product pages, enabling web visitors to click the button and instantly connect to a business without keying…
How Do Marijuana Dispensaries Pay Federal Income Taxes?
Marijuana dispensaries must file federal income tax returns and pay income tax the same as any other business—except that dispensaries are not allowed to deduct their operating expenses because they are considered drug traffickers under federal law. Marijuana dispensaries must pay federal income taxes by filing one of the following tax returns: Schedule C: For…
What Is Six Sigma in Project Management? A Guide for Small Businesses
Six Sigma is a project management methodology that identifies defects and variations in business processes to facilitate business transformation and improve output quality. It’s typically used by manufacturing firms, as it improves operational efficiency. However, other industries like banking and ecommerce adopt it for its cost reduction and enhanced productivity benefits. In this article, we’ll…
What Is a Prepaid Expense and the Required Journal Entry?
A prepaid expense refers to an expenditure that a company pays in advance before it receives the related benefit or service. These expenses are initially recorded as assets on the balance sheet because the company has paid for goods or services that it will consume over time or use in the future. They are gradually…