The inventory turnover ratio is an efficiency ratio that measures the number of times a company sells and replaces stock during a set period, generally one year. While you shouldn’t base decisions solely on it, a high inventory turnover is generally positive and means you have good inventory control, while a low ratio typically indicates…
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What Is an Accounts Payable Aging Report? Definition & Benefits
An accounts payable (A/P) aging report provides a concise overview of all outstanding vendor invoices categorized by the due date, enabling businesses to track their payment obligations efficiently. This report is essential for maintaining financial stability and fostering positive vendor relationships. A primary benefit of utilizing an A/P aging report is proactive cash flow management….
What Is the Profit First Method & How to Use to Increase Profits
The Profit First method, a cash management strategy for businesses, prioritizes taking profit before paying expenses. It involves using separate bank accounts for income, profit, owner’s pay, taxes, and operating expenses. A predetermined percentage of each sale is allocated to the profit account first, ensuring guaranteed profitability. This system forces businesses to manage expenses within…
Salary History Bans By State: Everything You Need to Know
Learn how state salary history ban laws can affect the interviewing and hiring process. Check your state and local laws.
A salary history ban prohibits employers from asking job candidates for information about their salary history. While there currently are no federal laws against asking these questions, there are 22 salary history ban states (including D.C.) that have imposed an official forbiddance on asking about salary history. To comply, some companies are updating job applications…
What Is Merchant Financing?
Merchant financing is a way for a business to get a lump sum of funds, with repayments generally determined by a percentage of the company’s sales. This source of funding tends to be easier to get as eligibility criteria are less strict for things like credit score and time in business. The tradeoff, however, is…
What Is Personal Trainer Insurance Coverage?
Personal trainer insurance coverage refers to a policy or group of policies designed to protect a personal trainer’s business assets. Personal trainers need muscular coverage, so to speak, and it typically starts with a general liability policy, which covers the costs of common lawsuits business owners face. Additionally, personal trainers should consider bulking up with…
Business Prepaid Card: What It Is & How It Works
Editorial and Partnership Disclosure A business prepaid card is a payment card that you load with funds before use. Unlike credit or debit cards, which are tied to a credit line or bank account, prepaid cards prevent overspending and debt. By limiting spending to the available balance, you can control employee expenses like travel, meals,…
Demand Forecasting: Comprehensive Guide for SMBs
Demand forecasting is a type of predictive analytics that helps anticipate upcoming consumer demand so you can make better supply chain, management, inventory, and budgeting decisions. An accurate understanding of your upcoming demand is incredibly important in retail as it determines your inventory quantities, the types of products you should stock, and when you should…