The term “material participation” is used to describe your involvement in a business activity. Generally speaking, you materially participate in an activity if you’re involved in the operation of the activity on a regular, continuous, and substantial basis. If you meet these requirements, any losses from the activity are not limited by the passive activity…
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What Is a Stay Interview? A Guide for Small Businesses
A stay interview—or retention interview—is a one-on-one discussion between an employer and an employee to determine what makes the employee stay in their job or with the company. Unlike exit interviews, which focus on departing employees, stay interviews seek information from current employees (generally high-performers but sometimes disengaged workers) on overall job satisfaction and engagement….
What Is Retail Accounting? Retail Method + Calculator
The retail method of accounting is an inventory estimation technique used to compute the value of ending inventory without having to take a physical count. Businesses with large volumes of inventory, like grocery stores, use the retail method because it’s quick and affordable to perform, unlike a physical count. Use the calculator below to compute…
Credit Check for Employment: Complete Guide
A credit check for employment is a type of pre-employment background screening that specifically looks at a candidate’s financial and credit history. Most companies don’t run credit checks on every new hire, typically reserving that for candidates applying for a position that deals with money. If and when you do run a pre-employment credit check,…
Segregation of Duties in Accounting for Small Businesses
Segregation of duties (SoD) in accounting is defined as developing a system where no person is performing tasks within more than one of three general functions. It’s an internal control mechanism that prevents fraud and error, and proper SoD ensures checks and balances within the business. When there is no SoD in place, opportunities to…
Top 15 CRM Features & Functionality Small Businesses Need
Customer relationship management (CRM) software offers various tools to help businesses improve relationships with their customers and manage their sales processes more efficiently. We’ve identified the 15 most essential CRM features and functionalities to consider when choosing and evaluating CRM systems to subscribe to so you can make the most of your investment. Learn more…
Skills Based Hiring: What It Is & Small Business Benefits
Skills based hiring is the process of finding new talent by focusing on a candidate’s skills rather than educational achievements or previous work experience. For example, if you conduct a pre-employment assessment to gauge an applicant’s proficiency in the skills necessary for your open role, you’re already using a skills based hiring approach. Shifting your…
Employer Branding: What It Is & How to Implement It
Employer branding is a marketing strategy that helps businesses represent their identity as an employer to current and prospective employees and job seekers as a whole. It involves creating a unique brand encompassing the entire employment experience, from mission and culture to salary and benefits. Strong employer branding strategies can help attract top candidates, boost…