Liquidity risk is a company’s ability to meet its short-term debt obligations. It is generally lower when you can convert assets into cash quickly and is typically higher if that is a process that will take a longer time. Liquidity risk for business owners is an important concept to be aware of as it can…
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Commercial Auto Financing: What It Is & How To Get It
Commercial auto financing, also known as business auto financing, allows you to obtain vehicles for business purposes. You can purchase vehicles if you want to retain ownership after you pay off the business auto loan, or you can do a lease if you want or need to regularly upgrade vehicles. Each has its pros and…
How to Get Payroll Checks: Instructions and Considerations
If you’re not utilizing electronic payments to issue paychecks to your employees, you’ll need to process your payroll checks manually. The first thing you need is payroll check stock. Depending on where you purchase, you should expect to pay around $40 to $120 for 500 checks—or even more if you want to have them customized….
High-low Method in Accounting: Definition, Formula & Example
The high-low method in accounting is the simplest and easiest way to separate mixed costs into their fixed and variable components. By using this method, we observe only the highest and lowest points in the data set with the assumption that all the data have a linear relationship. We use the high-low method accounting formula…
What Is Double-entry Accounting or Bookkeeping?
Double-entry accounting, a fundamental accounting concept that has been used for centuries, is a systematic method of recording financial transactions that ensures accuracy and accountability. “Double entry” comes from the fact that every transaction involves at least two accounts, with debits and credits entered to maintain a balance. This approach follows the accounting equation where…
What Is a Business Insurance Deductible?
A business insurance deductible is the amount of money that a policyholder and insurance carrier agree upon will be paid by the policyholder in the event of a claimable loss. This amount is paid first by the policyholder before anything is paid out under the policy. How a Business Insurance Deductible Works How a business…
Jury Duty Policy: State-by-State Guide (+ Free Sample)
When an employee receives a court-ordered document calling them for jury duty, you, as the employer, must provide them with time off to attend to it. This is where having a jury duty policy will come in handy—it will outline who is eligible, whether it is paid, and what process to follow. Although federal law…
What Is a Scrum Board? Everything You Need to Know
A scrum board is a visual tool that breaks down tasks in a project into sprints or specific periods of time in which the work must be completed. Often used in software development projects, it improves team collaboration, as everyone sees the tasks and progress in real time. It lets managers immediately spot bottlenecks that…