Line sheets are industry-standard product sales tools retailers, manufacturers, and wholesalers use to display complete product information to potential buyers and retail partners. Unlike product catalogs and lookbooks, line sheets are simple visual documents often used in business-to-business (B2B) transactions that give potential buyers all the information they need to place their orders. They are…
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What Is Buddy Punching & How Can You Prevent It?
Buddy punching is when an employee clocks in or out of an employer’s time-tracking system for a coworker. Essentially, it’s payroll fraud and costs employers millions of dollars each year. The employees are attempting to game the system by making it seem like one of them is working when they’re not, leading to the employer…
What Is a Virtual Phone Number? A Small Business Guide
A virtual phone number is a cloud-hosted phone number that lets you communicate seamlessly from anywhere using an internet-connected device. It isn’t tied to a fixed location, making it ideal for remote teams and those who want to have a familiar local area code. Pricing depends on the service provider, but it usually starts at…
What Is a Real Estate Professional for Tax Purposes?
To be treated as a real estate professional by the IRS, you must meet the following tests: Test 1: More than half (50%) of your personal services performed in all trades or businesses during the year are in real property trades or businesses wherein you materially participate. Test 2: Perform more than 750 hours of…
What Is an Early Payment Discount? A Small Business Guide
An early payment discount―also called a prompt payment or cash discount―is a reduction in an invoice balance when it’s paid before the due date. It provides an incentive for customers to pay their bills before they’re due. When used strategically, early payment discounts can speed up the bookkeeping process, increase customer loyalty, and improve cash…
Days Payable Outstanding (DPO): Formula, Calculation & Examples
Days payable outstanding (DPO) measures the average number of days from when a company purchases inventory and materials from the supplier until it’s paid. The DPO calculation is: DPO = Number of Days x = Average Accounts Payable Cost of Goods Sold The formula can easily be changed for periods other than one year or…
What Is 3PL? A Guide to Third-party Logistics Services
A 3PL (or a third-party logistics provider) is an outsourced partner that handles logistics processes for other businesses. 3PLs are commonly used by ecommerce companies that still manage product- and order-related tasks but want to delegate inventory management, warehousing, and fulfillment (including shipping, distribution, returns, and exchanges). Partnering with a 3PL company allows merchants to…
What Is VoIP? A Complete Guide for Small Businesses
Voice-over-internet-protocol (VoIP) is a type of phone system that uses the internet (instead of conventional copper wires) to make and receive calls. Compared to landline phones, it’s cheaper to set up and maintain and offers more advanced telephony features, such as automatic call distribution (ACD), interactive voice response (IVR) system, call analytics, and third-party integrations….