Sell-through rate (STR) is a critical retail metric that tells you how well products are performing based on the amount of inventory sold compared to the amount of inventory received during a set period of time. Typically, retailers will measure sell-through rates weekly, monthly, quarterly, and yearly, comparing their real STRs to their targets. It…
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What S Corporation Tax Must Be Paid & How To Calculate Each
While S corporations (S-corps) do not pay federal income taxes, they do pay payroll taxes, built-in gains tax, and excess net passive income (ENPI) tax. They also pay penalties if their annual information return Form 1120S is not filed on time. Both the ENPI and the built-in gains tax are only applicable if the S-corp…
What Is BNPL? Small Business Guide to Buy Now, Pay Later
Buy now, pay later is a new and popular payment option, particularly for online purchases. However, does the boost in sales BNPL provides offset its steep processing fees?
Buy now, pay later (BNPL) is a type of short-term financing that lets your customers pay for purchases over time, often with zero or low-interest rates. BNPL payments first gained traction with online shoppers looking to finance apparel and beauty purchases. While BNPL surged in popularity during the pandemic to finance large purchases, today, people…
Accounts Receivable (A/R) Turnover Ratio: Definition & Calculator
The accounts receivable (A/R) turnover ratio is helpful in managing your A/R and measures how effectively a business collects payment from customers they have extended credit to within a given period―generally one year. Analyzing the A/R turnover should include industry benchmarks to give you a full understanding of whether the company is doing fine at…
What Are Payment Links & How to Use Them
With a payment link, merchants can accept payments remotely without the need of customer accounts, a website, or special apps.
Payment links (also called checkout links or pay by links) provide merchants with a means to request and collect remote payments on almost any online and remote platforms. It is as simple as attaching the link to an email, a digital invoice, on your websites and social media posts, in your instant messages, and even…
What Is Fixed Asset Accounting? 4 Things You Need To Know
Fixed asset accounting is the process of capitalizing the purchase cost, allocating the cost over the asset’s useful life via depreciation, testing the fixed asset for impairment, and removing the fixed asset from the books following a disposal. We go over each in detail and provide examples. 1. Accounting for the Fixed Asset Cost The…
What Is Impulse Buying & How to Leverage
Impulse buying refers to unplanned or spontaneous purchases that shoppers make on a whim due to an emotional response at the moment of seeing the item. Impulse buying can happen both in brick-and-mortar stores and online. This guide will explore why people buy impulsively, what items are most frequently purchased, and how you can capitalize…
What Is a Personal Holding Company (PHC)?
A personal holding company (PHC) is a closely held C corporation (C-corp) where at least 60% of its income is from passive investments like stocks, bonds, and rental activities. Most PHCs result from a business owner operating a business and selling all its assets but failing to distribute the money to the shareholders to avoid…