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…
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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…
What Is the STAR Method in Interviews—An Employer’s Guide
The STAR method, standing for Situation, Task, Action, and Result, is a structured interview framework designed to help candidates effectively answer behavioral questions. This approach outlines four critical components that individuals should incorporate into their responses to demonstrate how they’ve handled specific professional situations. By focusing on these elements, the STAR method provides a cohesive…
Pros and Cons of PayPal: Guide for Small Business
PayPal is one of the first and most trusted names in online payment solutions, offering PayPal Business for ecommerce and PayPal Zettle POS software for in-store sales. Small business owners love PayPal’s easy setup, convenient payment methods, and recognizable brand that’s proven to increase conversions. PayPal often makes our list of best merchant services and…
Business Credit Card Fraud & What Small Companies Can Do
Credit card fraud occurs when a credit card is used to make purchases, pay for other financial transactions, or withdraw cash without the consent of the cardholder—either by physically taking your credit card or by hacking your card information virtually. If you become a victim of credit card fraud, you can incur unauthorized charges on…
What Is an Invoice? Definition, Purposes & Basic Components
An invoice is a document that you send to customers to request or collect payment for a good or service that has already been provided. The invoicing process starts when the business fulfills the order and delivers it to the customer. In Wave, you can create professional-looking invoices quickly and easily. In our example below,…