2/10 Net 30 is a common credit term used on invoices to encourage early payments. It means that a buyer can take a 2% discount on the invoice total if payment is made within 10 days. If the discount is...

What is Working Capital? Capital is another word for money and working capital is the money available to fund a company’s day-to-day operations – essentially, what you have to work with. In financial speak, working capital is the difference between...

What is a Universal Product Code (UPC)? A UPC, short for universal product code, is a type of code printed on retail product packaging to aid in identifying a particular item. It consists of two parts – the machine-readable barcode, which...

What is a Trade Show? A trade show is an event held to bring together members of a particular industry to display, demonstrate, and discuss their latest products and services. Major trade shows usually take place in convention centers in...

What is a Tax Identification Number / TIN? A tax or taxpayer identification number, also known as a TIN for short, is a number issued to individuals and organizations to track tax obligations and payments they make to the Internal...

What is a Tariff? A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods...

What is a Subchapter S Corporation (S Corp)? A Subchapter S corporation, also known as an S corp, is a specific type of corporation; the other type is a Subchapter C corporation. In a nutshell, an S corp provides all...

A small business is a privately owned company that operates with a relatively small number of employees and lower revenue compared to large corporations. Small businesses exist in nearly every industry, including retail, restaurants, healthcare, technology, manufacturing, construction, and professional...

A purchase order (PO) is an official document issued by a buyer that commits them to pay a seller for specific products or services that will be delivered in the future. It acts as a formal agreement that defines the...

What is Prospecting? Prospecting is the first step in the sales process, which consists of identifying potential customers, aka prospects. The goal of prospecting is to develop a database of likely customers and then systematically communicate with them in the...

What is a Profit Margin? Profit margin indicates the profitability of a product, service, or business. It’s expressed as a percentage; the higher the number, the more profitable the business. Types of Profit Margins Small businesses, including retailers, often look...