The Internal Revenue Service tax code generally allows corporations to contribute to tax-exempt charitable, educational, scientific and literary purposes and to deduct the amounts from their federal income taxes. Corporations may make cash donations or in-kind contributions, the latter which can consist of any type of property, including equipment, buildings and vehicles. However, there are tax laws relating to the deductibility of donations depending on the type of corporation, valuation of the contribution, documentary evidence of the contribution and limits on the amount the corporation can contribute.
Internal audit is a vital process that can identify both major and minor issues in an engineering company. An internal audit plan determines the steps auditors take during the this process. Department managers, project directors and senior executives should all have input in developing the audit plan, including the methods to be used, the internal processes to be examined and the scheduling of interactivity with the internal audit team.
Generally, anytime your business sells inventory, it's going to charge sales tax. In some states, certain types of rentals are taxable too. With a rent-to-own contract, from the government perspective it's the "owning" part that's important. Rules vary, but you can expect to charge your customers sales tax on a rent-to-own deal.
Customer relationship management systems gather a wide range of customer data into a single source, allowing employees across an entire organization to share information and important notes about customers' preferences, buying habits, billing information, service history and contact information. Return on investment measures the profit earned from any capital investment, such as implementing and using a new CRM system. Measuring ROI on CRM systems can help you to quantify the otherwise qualitative contributions of the system to your business's bottom line.
When a company has no other option but bankruptcy, the owners can choose between Chapter 7, a complete liquidation, or Chapter 11, which leads to reorganization. The price-to-earnings ratio compares a company's stock price against its net income for any given period. Entering bankruptcy for liquidation or reorganization can significantly affect price/earnings valuations.
When dividing territories, franchisors have to balance the needs of the franchisee, franchisor, and customer. The franchisee must be able to be profitable within their territory without experiencing significant cannibalization, the franchisor must be able to collect enough revenue to support their business model, and the franchisor must try to adjust the territories in such a way that the most customers have access to the product and/or service that the franchised business offers.
Large chains and multinational companies enjoy a strategic advantage over smaller businesses in that they can leverage economies of scale when purchasing products or raw materials, which nets them significant savings. Joining a purchasing co-op offers a way for you to access similar savings without giving up the independence of owning your own business. It also provides uniform branding and consistent packaging.
Businesses often view call centers as a kind of necessary evil that delivers crucial customer service but at an ongoing financial loss. Call centers, however, sit at an intersection between customer needs and the products and services your business offers. Implementing a cross-selling program at your call center can boost sales, deepen customer relationships and improve customer retention.
An audit report is the auditor’s opinion through findings and recommendations after an investigation into a company’s financial information. There are no statutory requirements to comply with the report, but companies must comply in the case of International Financial Reporting Standards, or government-ordered audits. Audits also focus on gauging the performance of the business besides fraud detection. It is important to comply for the sake of improving performance, managing risk and enhancing internal controls.
When starting your own sewing business, you always want to make sure that you have a business plan to work from. Start your own business sewing children's clothes with help from an experienced business professional in this free video clip.
When growing sales at a liquor store, the first thing you want to do is find a way to minimize your overhead. Grow sales at a liquor store with help from an experienced business professional in this free video clip.
When you used to work as a shoe designer, you can do a lot of other jobs in the creative services industry if you so choose. Find out what jobs you can get when you used to work as a shoe designer with help from an experienced business professional in this free video clip.
Motivating a sales team to set parties to sell jewelry is all about providing them with incentives. Motivate a sales team to set parties to sell jewelry with help from an experienced business professional in this free video clip.
Making money cleaning out a storage rental is all about making an inventory spreadsheet in a program like Excel. Make money cleaning out a storage rental with help from an experienced business professional in this free video clip.
When fundraising for a 501(c)(5), you want to start by telling everybody what your mission is. Find out about fundraising for a 5010(c)(5) with help from an experienced business professional in this free video clip.
Getting a good motto for your cosmetics business is all about starting with a mission and vision statement. Get a good motto for your cosmetics business with help from an experienced business professional in this free video clip.
Getting a jewelry line going begins by deciding what type of jewelry you actually want to sell. Get a jewelry line going with help from an experienced business professional in this free video clip.
When going to an admissions interview, you always want to wear business professional attire. Find out what to wear to an admission interview with help from an experienced business professional in this free video clip.
College graduates make a significantly larger amount of money than non-graduates do across a large number of industries. Find out how much money college graduates make as opposed to non-graduates with help from an experienced business professional in this free video clip.
In exchange for letting your partnership raise money from investors who benefit from limited personal liability, Michigan closely monitors the involvement of partners in your limited partnership. The company must follow the procedures specified by the state's business code or agreed upon in a partnership agreement to remove a general partner. The limited partnership must also immediately notify the state of the change.
Managing a retail entity demands long hours and takes tremendous preparation. You must push sales, hire and train staff, maintain equipment, ensure the store meets code, and polish off paperwork. With so many duties, store managers understand the importance of thinking strategically. They align sales goals, staffing and merchandising with customer needs through performance analysis and calculated guesses on future operations. Successful managers might differ in their styles, but all have one thing in common -- they plan ahead.
Losing in court is never good news for a business. You can take some comfort when tax time rolls around and you're able to deduct some of your expenses. If you paid damages or settled the case, you may be able to write that money off too. This only applies to business legal losses, not expenses for personal lawsuits.
The data storage market is fast-moving, releasing a large number of new products every year. The global hard disk drive market is expected to grow at a compound annual growth rate of 8.1 percent through 2015, while the market for flash memory drives is expected to grow at a rate of 51.5 percent between 2010 and 2015. Public spending on these products is expected to grow by 127.5 percent between 2011 and 2016.
A cottage bakery can be an exciting way to earn an income while operating from the comfort of your home. The demand for baked and pastry goods is growing due to changing lifestyles that leave little time for people to cook their own meals. A home bakery is an opportunity to offer your customers a home-baked alternative to mass-produced bread and pastries from big industries. However, to create a financially rewarding business, you must run your bakery professionally and abide by the cottage industry laws in your state.
A growing corporation can face the pressures of heightened expectations. Analysts and shareholders may have become accustomed to a rate of growth that management finds hard to sustain. Executive compensation might hinge on “making the numbers,” that is, achieving earnings, profit and stock price targets for the period. A strategy to accelerate revenue and defer spending can provide short-term results, but management must be careful not to cross the line into fraudulent earnings manipulation.
Restaurants collect sales taxes for state and local authorities, holding the funds in trust until they are sent to tax offices. Since food gets taxed when sold, food businesses don't pay taxes on the foods they buy for resale. Food suppliers don't tax food supplies on company invoices, but many food businesses buy food at food clubs, warehouses, grocery stores and farmers' markets. Tell these vendors that you are buying for resale and supply your tax number for a tax exemption.
Facility maintenance is a service that many companies and government offices contract to third-party vendors. The facility manager typically negotiates contracts and oversees the work done by the vendors. Work may include everything from cleaning offices and maintaining the landscaping to inspecting elevators and making building repairs. Managing those contracts includes creating and following budgets, participating in strategic planning sessions and ensuring that maintenance vendors follow environmental compliance regulations.
A inventory strategy addresses the practical question of how to keep a business supplied and meet customer demand. However, a successful inventory strategy connects gracefully with every other aspect of a business, from cash flow management to customer service. Although many companies operate without formal inventory strategies, developing and articulating such a strategy is an opportunity to evaluate company priorities and align day-to-day purchasing decisions with bigger-picture goals.
Small-business owners are often so hard-pressed with meeting day-to-day sales goals and management tasks that it’s hard to think about next year’s -- or even next month’s -- operational needs. Taking time to create thoughtful long-term objectives and the tactics for reaching them, however, will help you avoid putting out daily or weekly fires and help you achieve stability with profitability.
A study done by the National Fire Protection Association found that between 2006 and 2010, nearly 8,000 establishments that serve food and beverages reported fires each year, with an annual cost of $246 million in direct property damage. The most common causes of the fires are cooking equipment, heating equipment, electrical distribution and lighting and smoking materials. You can minimize your risk of a restaurant fire by taking preventive measures.
Ubuntu, the popular Linux desktop operating system, offers a variety of server, storage and performance options to its users, including cloud technology. If you want to use Ubuntu for your business’s cloud computing, you can incorporate Ubuntu as the guest operating system on a public cloud, or you can build a private cloud on Ubuntu’s OpenStack platform with your own hardware and software. To determine which cloud type (public or private) is the best fit for your organization, it’s useful to consider some of the typical uses of the Ubuntu private cloud and then decide whether those uses are a…
When it comes to creating and running a business, the legal ownership structure of the company affects many aspects its operation. Many small businesses start out as single owner operations or partnerships and may evolve into corporations over time. A cooperative is a business that is owned and operated to benefit the people who use its services.
The purpose of a business plan is to help you take a proactive approach to moving your company forward. This requires not only assessing where you are now but also where you can go in the future based on a variety of historical data and educated projections. The more accurate you can be with your business projections, the more useful your business plan will be -- and the more likely it is that it can attract investors, partners or lenders.
Steering a company toward success is no easy task. Accountants have devised measures to help your business understand how well it's doing and expose weaknesses that you must address. The starting point is gross annual revenue, which indicates the volume of your company’s sales. Net business income reveals whether your business can generate a profit.
Generally accepted accounting principles define contingent liability or loss as an existing situation or set of circumstances that might hurt your business. These events will ultimately resolve when one or more future events occur or fail to occur. For example, if a customer suffers an injury caused by your products, he might file suit in court. The financial impact of the case is dependent on the court’s decision and thus is a contingent liability. Sometimes, companies don’t know that a particular event is a contingent liability, so they might not record the event appropriately. If you fail to treat a…
Simple gifts and thank-you notes to customers, vendors and suppliers don’t set you apart with your business partners and might even come across as gratuitous formalities. A more effective way to show gratitude for long-term business relationships is to create strong partnerships that show you can help your business associates meet their goals, not just vice versa.
A crisis management plan might seem like a project that takes a lot of time and, occasionally, some expense to develop for something you’re not likely to ever use. Unfortunately, events often occur faster than people can respond and you can’t foresee every disaster. Because crises can result in significant losses, the main goal of a crisis management plan is to mitigate the effects of a disaster.
If you want to sell your business or borrow against it, you’ll need to analyze its individual components and appraise its overall worth. In some cases, the breakup value of the business might be worth more than the value of the enterprise as a whole. Valuing a business begins by gathering lots of data.
When a business reaches such a size that a small group cannot effectively handle all of its routine tasks, the leaders may opt to split the company into sections. These sections can be categorized by geography, specialty or product line. Companies may also choose how they split their workforces, casting employees and managers into either subordinate departments or into autonomous strategic business units.
Your business name can help draw in customers and set you apart from the competition. So when another business steals your name, it can confuse your customers and spell disaster for your business. Business names and logos are protected by trademark law, and depending on the circumstances surrounding the theft of your name, you may also have other causes of action.
Listing shares in the public market in an initial public offering, or IPO, may seem like the obvious evolution of a growing business. By going public, a company gains access to more capital and earns the notoriety of trading on a major stock exchange. Pursuing an initial public offering, however, can be an expensive and timely process, and not all privately held companies are cut out for it. In fact, most aren't: Only 1 percent of all businesses in the United States are publicly traded, according to a 2013 article on the Forbes website.
The basics of running a business will always include the topics of sales maximization and profit maximization in the list of necessary information. While they are both useful concepts, though, they can be easily confused with each other in the actual day-to-day operations of running a business. Understanding the differences between the two strategies will enable you to pursue the strongest financial position for your business.
Professionals often have emotional attachments to their jobs and their roles in their company. Any time an organization goes through internal changes, it has the potential to impact the workplace dynamic, alter productivity and change working relationships. However, managing expectations and encouraging open communication can help make transitions smoother for everyone.
If you let your customers do business with your company on credit, it's always possible some of them won't pay. When you earn the money, you record the payment due in accounts receivable. If the client doesn't come through, you eventually write off the bad debt in your ledgers. In most cases, you won't have to send out Form 1099-C to the customer in arrears.
If your contract is evergreen, it contains language that automatically renews the contract when the initial term is up, saving both parties the chore of renegotiating. However, the simplicity of the evergreen clause is also its downfall. Because evergreen contracts are designed to self-perpetuate, it can be incredibly hard to get out of them.
Ordinarily, crisis management involves a quick response, dissemination of accurate information, and consistent messages to employees, stakeholders and the public. Occasionally, a crisis of unusually large magnitude occurs -- a natural disaster or national emergency. To successfully handle these critical incidents, fully understand all dimensions of the incident and analyze how it might affect your company and its stakeholders.
Lean manufacturing is a method by which you eliminate wasteful processes in your business. Whether you provide goods or services to your customers, when you eliminate waste you can make your business more cost effective and offer more competitive prices. Waste can be of many types. For example it can arise from manufacturing more products than you need, which means you’ll need extra storage space. You can adopt a standardization process to set economical methods in your production processes.
To make sure your warehouse operates efficiently and you can provide good services to your customers, you’ll need to conduct warehouse operations assessments at regular intervals. A good evaluation strategy helps you determine your warehouse productivity and whether its performance meets industry standards. The evaluation covers all aspects of your warehouse operations, including receiving and storing goods and efficiently using storage space.
When two organizations combine forces to become one organization, mergers and acquisitions happen. The organizations might combine all that they own to create a brand new company that is a stronger and more competitive entity. An organization also may acquire another organization that has strategic capabilities and resources of interest. It might incorporate the acquired organization’s operations within its operations. Organizations must consider certain factors to ensure success when combining organizational systems in acquisition.
Nonprofit organizations do work that support the causes of groups such as religious, charitable, scientific and educational organizations. For example, they might promote youth sporting events or raise funds to prevent acts of violence toward humans and animals. According to Section 501 of the Internal Revenue Code, these organizations need not pay federal taxes as profit-making institutions do -- but they do need to pay other taxes that are applicable to them.
When you own or manage a business, you must constantly find opportunities to make the business prosper. Forming a business partnership is one way to bring in additional funds and talent to make your business grow, but running a partnership business can be difficult due to differing approaches of partners. Partners, therefore, draw up agreement to clarify key aspects of the business to minimize difficulties. Even with a solid partnership agreement, a partner might breach the contract, in which case you’ll need to send a notice to the partner at fault.
A nonprofit organization that fails to file an annual tax return or annual notice for three consecutive years will automatically lose its nonprofit status and federal tax exemption. Once a month, the Internal Revenue Service releases an automatic revocation of exemption list, which includes the names of nonprofits that failed to meet the filing requirements. If your organization is on the list, you must complete a new application to reinstate its recognition as a nonprofit.
Licensing agreements allow someone to use the intellectual property of another party for a limited time or purpose. Intellectual property licensing agreements typically deal with patents, trademarks, copyrights or trade secrets. Making sure that intellectual property ownership interests are correctly addressed in a licensing agreement is important because it will clarify the expectations of the parties, and help to avoid any potential disputes following termination of the agreement.
What’s good for the goose isn’t always best for the gander when it comes to balancing brand management and corporate strategies. Some executive management goals might temporarily improve the bottom line, but can do long-term damage to a company’s ability to sell. Knowing how to integrate strategic goal-setting with brand management will help you optimize your sales and profits.
Organizations often focus on aligning management information systems with business goals. They collect, process and store data and then use this information to report on and manage operations. A viable management information system determines critical relationships and connects infrastructure, people, culture and progress. It provides a framework to evaluate the organization and provides many benefits.
Rather than focus on the fact that an operating loss probably means a sole proprietor made an ill-advised decision or performed a critical process incorrectly, recognize that a paper loss can mean a tax win for the business owner. Because a sole proprietor does not operate his business through a separate legal entity, a company’s net operating loss can lower the business owner’s tax burden on his reportable income. Equally important is the fact that the losses of a sole proprietorship in one year can be used be to offset the business owner’s personal-tax burden in another year.
Crisis management occurs when leaders create a set of guidelines and conduct preparation activities to give direction for the most difficult situations. They plan, prepare and make decisions based on facts about the company's environment and situations that might impact business activities. Crisis management improves preparedness and documents how and where the company intends to allocate resources when a crisis occurs. As a result, the organization produces faster and more coordinated decisions in crisis and achieves a competitive edge over others facing the same issues.
Operational audits enable you to focus on areas of your company that need improvement, while at the same time providing the opportunity to enhance areas that are performing well. During audits you have the opportunity to determine if your company's business operations are functioning at peak efficiency. Operational audits are good tools for measuring the effectiveness of internal financial controls, evaluating manufacturing operations and evaluating sales efficiency.
A crisis is an unexpected event that can cause serious internal and external damages to your company. By its very nature, a crisis is difficult to predict and plan for, which is why many are unprepared to react when one occurs. Preventive measures are just as important as how you react in a crisis. With preventive plans in place, you ensure employees will react appropriately and your company will minimize the damage.
Goals are not just wishes and hopes for new seafood restaurant businesses. They serve as objectives actively sought and formulated even before the doors open to the public. These don't just revolve around sales and profit margins. Overfishing and the depletion of certain fish species have prompted seafood establishments to become more conscientious about the kinds of fish they serve, making sustainability an essential a part of seafood restaurant goal-setting.
The individual members of a board of directors can sign contracts outside of a board meeting if the board has given them the authority to act as an agent of the organization. In many instances, boards have specific policies outlined either in the organization’s bylaws or in board-approved operating documents.
Someday, you or the other people at the top of your business won't be there any more. While the hope is that the change will occur in a gradual and planned fashion, that isn't always the case. Lacking clear policies and procedures for succession planning leaves companies in a lurch when the time comes to select new leadership.
As businesses grow, they tend to hire more managers to oversee employees and make decisions on behalf of the chief executive. Over time, expansion can lead to a hierarchical or "tall" organizational structure, with several levels of management between the chief executive and ground-level workers. A flat organization is a company that strives to maintain few levels of management between the CEO and employees.
All organizations face issues in accountability ethics and social responsibility, but especially in the nonprofit world. Nonprofits operate in strict regulatory environments, with their operations scrutinized by supporters just as much as regulators. Both represent distinct ethical commitments requiring diligence and dedication from managers, employees and volunteers at all levels of an organization, and both are critical to long-term success.
Distributor agreements and agency agreements are contracts used for similar purposes in a variety of industries, but each includes distinct characteristics establishing a different type of fiduciary relationship. A fiduciary relationship is one in which one party is legally bound to represent and act in the best interest of another. It is not uncommon for the same company to enter into both types of agreements with different parties, depending on the specific needs of the company's business model.
According to Bill Grimes, president of sales and customer service at the training firm Grimes & Associates, only three to five percent of sales professionals have no problems making cold calls. Most tend to focus instead on the inevitable rejection they must face as opposed to the conversations that result in success. Losing the fear of cold calling requires a change in mindset where every rejection brings you one step closer to the sale.
Companies and of all sizes rely on organizational structure to pass orders from the chief executive officer on down to the line employee. Larger companies -- as well as organizations and governments -- use a multi-level hierarchy to keep the operation running and ensure proper communications. Several different hierarchy models can be used depending on the company's needs and management style.
Sales campaigns can be an effective way to get rid of inventory, drive sales of a new product or service or revive interest in an offering that has served your clients well for many years. Planning the execution of a sales campaign is critical to its success. A poorly managed campaign can cost your company time and money if you fail to marshal the resources required to sustain the campaign all the way through closure.
Sustainability principles impact every business operation of your company. Business sustainability is defined as controlling or managing all the elements of business including financial operations, social responsibility, environmental responsibility, contractual obligations and taking full advantage of business opportunities. Regardless of the size of your company, if you lose control of any of the basic elements of business sustainability, you reduce the chances for your company's long term success.
Skype started as a convenient way for consumers to keep in touch with their friends and family over the Internet, but businesses are turning to it as a viable solution for their office communications. For many businesses, using Skype as an add-on service has reduced long distance costs, but assessing its long-term ramifications is worth a second look.
Concentric mergers, also known as congeneric mergers, combine two companies from the same industry that have no previous business relationship. The acquiring company absorbs the target and allows it to continue operation as part of the newly created company. The two companies typically do not offer similar products but may have the same suppliers or distribution channels.
If you thought microbreweries were a small niche, their place in the brewing universe reveals that they are in fact a niche within a niche -- a segment in the larger spectrum of craft brewers in the United States. American craft brewers, as defined by the Brewers Association, are small, producing fewer than 6 million barrels per year. They also are independent, with less than 25 percent ownership by non-craft brewers, and are "traditional," meaning that a brewer's flagship beers are all malt, or at least 50 percent of the brewer's volume is in all-malt beers.
Sales departments at small businesses often become the tail that wags the dog because of their importance in generating revenue to keep the company afloat. This can lead to sales staff focusing more on their own commissions than the long-term success of the business. Understanding how to evaluate and control your sales processes will help you keep your business on track.
A realignment describes a fundamental shift in the way a company does business, often necessitating a major change in the way the company markets its products or manages is internal operations. If your business is struggling, or if you want to take it to the next level, consider a business realignment to achieve exponential, rather than incremental, growth.
A conflict of interest exists when an organization or its employees could possibly benefit from exploiting their official capacities. This doesn’t necessarily mean that the parties involved are corrupt. Rather, it only means that the potential exists for corruption -- but that potential alone can be enough to damage a business or person’s credibility.
At its core, a merger or acquisition is a consolidation of companies with the intent of growing the business. While growth is the goal, there are a number of ancillary effects, both positive and negative. In the end a merger or acquisition has far-reaching impact on employees, reputation, revenue and customer relations.
When employees don't have a clear understanding of what they're expected to achieve and how their performance will be evaluated, they tend to lose direction and motivation. The same is true for supervisors, who need to know where they are supposed to be leading their employees and how to get there.
A commodity is a type of product that is so widely available that a business’ brand doesn’t matter as much as its relative pricing. For example, eggs are basically the same wherever you buy them and whichever brand you choose, as are wheat, butter, building supplies and computer printers. When a product’s brand starts to matter less than its price compared to substitutes, that’s the beginning of commoditization.
Conventional business wisdom holds that it’s easier to lower your prices once you’ve established them than it is to raise them once customers are used to them. Entering a market, however, might be better done with lower prices until you’re established. Understanding some of the basic concepts regarding pricing strategies for a new product or service will help you make the optimal decisions for your new company, product or service.
The Internal Revenue Service requires that you value your inventory at year’s end so that you can determine your cost of goods sold, or COGS, gross profits and taxable income. The IRS assumes your beginning inventory for one year is equal to the ending inventory of the previous year. If it isn’t, you must tell the IRS why. To prepare your tax returns, you need to establish your year-end inventory value, either by taking physical counts or by using an estimation method approved by the IRS.
It’s the little things in life that make it worth living, so the saying goes. When it comes to owning a business, this quip couldn’t be more true, especially when the little things involve improving customer or employee relations. Going the extra mile doesn’t have to cost much, but it can pay off big in low employee turnover, more customers -- and increased sales.
Demand planning and demand management, although they seem similar, have distinct goals. Demand planning involves predicting upcoming consumer demand, which helps a business prepare itself for the near future. Demand management, in contrast, involves coming up with a plan to handle consumer demand smoothly and efficiently.
Some of the most successful companies in the world operate according to a philosophy of continuous improvement. Companies that emphasize continuous improvement aim to become more effective, efficient and profitable on an ongoing basis. Leaders in a continuously improving company need accurate feedback to keep improving their leadership skills.
Having a multinational corporation in the host nation gives that corporation a "home base." Find out about the advantages of having a multinational corporation in the host nation with help from a technology professional in this free video clip.
Terminating part of a business may be necessary if that business is getting too big to maintain. Terminate part of a business with help from a technology professional in this free video clip.
Following the proper steps to close a corporation with the Internal Revenue Service can mean the difference between having a smooth transition and being faced with fines and penalties. For many business owners, going through the process of closing a business with the IRS may seem overwhelming, but by carefully following the IRS instructions and filing the proper paperwork you can save yourself a headache.
Customer retention strategies in insurance take a new customer and turn them into a lifelong one. Find out about customer retention strategies in insurance with help from a business consultant in this free video clip.
Multinational companies, as their name suggests, do business in multiple territories at once. Find out about the advantages of multinational companies due to available finance transfer options with help from a business consultant in this free video clip.
People are commonly motivated by different things depending on the person. Find out about the limitations of conducting qualitative research on motivating employees with help from a business consultant in this free video clip.
Paying commission plus mileage is typically something that happens for employees who have to travel. Get ideas on ways to pay commission plug mileage with help from a business consultant in this free video clip.
Inventory demand forecasting essentially involves predicting what will be popular. Find out what information vendors want from retailers on inventory demand forecasting with help from a business consultant in this free video clip.
Just because you've sold off a sole proprietorship doesn't mean you are free from all liability. Find out about liability after the selling of a sole proprietorship with help from a business consultant in this free video clip.
A limited liability partnership is a specialized type of partnership in which all of the partners have some kind of limited liability. It is a formal business entity, meaning it must be created by filing the appropriate paperwork with the state. LLPs are not a common form of business, as many people will either forgo the formality and use a handshake or general partnership agreement or, in the alternative, use a more well recognized entity like a corporation or limited liability company. However, an LLP can be a useful business form for certain kinds of businesses.
Like a well-written contract or partnership agreement, corporate bylaws can help prevent miscommunications, resolve disagreements and avoid legal problems. Bylaws are a list of general principles and specific guidelines for strategically managing an organization, directing some of its management activities and limiting the power of directors, officers and managers.
Nonprofit organizations face the same financial constraints as any company that's in business to make money, but they also have financial management concerns specific to nonprofits. Nonprofits have to meet economic objectives to ensure their survival and growth, but these objectives are not tied to building wealth for the organization's owners, as they are in for-profit businesses. Nonprofits have a variety of internally focused economic objectives, and their core missions can also influence macroeconomic factors.
Contract management has become a critical process in many organizations, owing to the fact that the business environment is becoming increasingly competitive. Buyers and sellers must manage customer and supplier expectations while controlling risks and costs. Every enterprise -- whether large, medium or small -- at some time will use contracts, which must be planned, awarded and managed in a structured process.
Businesses vary greatly in terms of types of products and services they provide, but all companies need to turn a profit to survive. If a company isn't able to make profit, it loses money over time and may eventually be forced to shut its doors. A business' expenses are one of the two key factors that determine profit.
Having clients that don't pay up hurts your business, especially in a sole proprietorship where every client is critical. Despite you feeling the pain on your bottom line, an unpaid invoice doesn't always result in a tax deduction. You're only allowed to deduct unpaid invoices as a business bad debt if you use the accrual accounting method. If you use the cash method, you're never allowed to write off the unpaid invoices because it was never included in your taxable income. For example, say you bill a client $5,000. Under the accrual method, that $5,000 gets added to your taxable…
A lighting audit analyzes the performance of a site's lighting system. Conducting a periodic audit of your company's facilities helps you find areas of inefficiency and save money on bills. Lighting audits also identify recurring repairs to the lighting system that could be prevented by more frequent maintenance. You can reassess your needs as the company grows to make sure the lighting plan is keeping up with your business.
As of the date of publication, 45 states and the District of Columbia collect sales tax, as do a number of municipalities. Unless you conduct business in Delaware, New Hampshire, Oregon, Alaska or Montana, you must adopt the proper journal entries to document all transactions that include sales tax. When you account for sales tax, you must record two separate journal entries -- one when you make the sale and the other when you pay the sales tax collector. Although recording the sales tax at the time of the sale generates a business liability, you eliminate the liability once you…