Based on self-reported numbers, the average US small business owner income is around $127,00 per year, or $62 per hour. That is considerably higher than the National Wage Index[1] for non-self-employed workers, which lists the average annual US wage at $63,795. However, small business owner incomes can range between $25,000 and $339,500 annually[2], based on…
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7 Types of Leads in Sales
A sales lead refers to a person or company with the potential to become a customer. Every lead is unique, and converting them into loyal, paying customers requires an effective lead generation process. Learning the types of leads in sales is crucial to determine the best marketing efforts, increase conversion, and win more deals effectively….
What Are Accounts Receivables & the A/R Journal Entries?
Accounts receivable (A/R) are outstanding balances that are yet to be paid by customers because of selling goods and services on account. A/R is an asset in the balance sheet and has a normal debit balance. Debiting A/R increases its balance while crediting it decreases its balance. Knowing what are accounts receivable can help small…
What Is the Completed Contract Method (CCM)?
The completed contract method (CCM) is a way to recognize income and expenses for construction contracts. With this method, no income or deductions are recognized until the contract is complete. When you “recognize” income, you are recording it for tax or other reporting purposes. Long-term contracts require special rules to determine when the income and…
What Is a Capital Expense? A Small Business Guide
A capital expense, also known as a capital expenditure or CapEx, refers to a significant, long-term investment made by a company to acquire, upgrade, or extend the life of tangible assets. These assets are typically used in the production of goods or services and have a useful life that extends beyond the current accounting period….
What Is Visual IVR? A Complete Guide for Small Businesses
Visual interactive voice response, or VIVR, is a system that adds a visual interface that guides callers to a web-based support experience. Visual IVR gathers real-time data and helps customers navigate menus quickly. Personalize the support journey by seamlessly connecting customers to self-service options or experts who can solve their concerns at first contact. Read…
What Is Business Personal Property (BPP) Insurance?
Business personal property (BPP) insurance is an important type of small business insurance for any business that owns equipment, inventory, office furniture, or tools. It is a type of commercial property insurance, meaning it is first-party coverage. It can be purchased from some carriers as a standalone policy and is often available as an endorsement…
Relevant Costs for Decision-making & How They Apply To Common Decisions
A relevant cost for decision-making is a cost that varies when evaluating two or more alternatives. Relevant costing is used only for short-term and nonroutine decisions. While relevant costs are important, managers should also consider nonquantitative factors in decision-making. In this article, we’ll go over the process of relevant costing and how you can apply…