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…
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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…
What Is Scrambled Merchandising? Pros & Cons + Examples
Scrambled merchandising is a merchandising technique in which you mix unrelated or off-brand products into your store that are not associated with your original brand or product selection. The technique is most often used to test out the introduction of new products, reach new customers, offset seasonal slumps, and meet unmet demands in your target…
What Is Project Management & How It Benefits Small Business
Project management is the discipline of organizing tasks, resources, and timelines to complete a project and achieve predetermined goals. It applies to various types of projects, such as software development and marketing campaigns. Regardless of the type of project, all initiatives typically follow the same life cycle that involves five key phases: initiation, planning, execution,…
What Is APY In Business Banking & How To Calculate It
Annual percentage yield (APY) refers to the total amount of interest that you can earn on a deposit within one year. Because APY compounds, the APY on account will be slightly higher than the stated interest rate. In other words, you can earn interest on previously earned interest with APY. APY is important because it…
What Is Employee Compensation: Types & How Compensation Plans Work
Employee compensation is what employees receive for services or work rendered at a company or business. While it typically refers to the money that workers get from employers, there are many forms of compensation for employees. Aside from wages and bonuses, it includes non-monetary items like stock options, company-assigned computers, and benefits (such as health…
What Is a Severance Agreement? A Guide for Small Businesses
A severance agreement is a contract between an employer and an employee that outlines the terms of a severance package upon employee separation. It covers various aspects, including financial compensation, benefits, confidentiality clauses, and non-disparagement agreements. Severance packages are generally a company perk—unless there’s an employment agreement or collective bargaining agreement that requires one upon…