This is a guest post by Leana Thorne. Leana is an influential online presence in the world of business strategy and finance. She is currently is writing on behalf of Corporate USB.
Ramen profitability is a relatively new term, used to describe the threshold that marks a startup’s ability to provide its founder with the most basic means of supporting him or herself. In other words, it marks the point at which the startup starts earning enough to cover the costs of operation and provide a salary for its one employee (the founder).
As a business owner, you are probably aware that you need to keep very accurate financial records. What you may not know is that you also must keep accurate records of employee timekeeping data. And these records must be retained for two full years after an employee leaves the company. The DOL lists the records employers must retain as:
Return on investment is a performance measure used to evaluate the value of an investment. ROI is a pretty straight forward concept and it doesn’t take complicated math to calculate it. I am going to show you the basic ROI formula and then I am going to talk about where a business can use it beyond just buying shares.
Return on investment is calculated by dividing the net benefit of the investment by the cost of the investment.
ROI = (gain from investment) – (cost of investment) / (cost of investment)
Make sure to subtract the cost of the investment from the gain since you are spending money in order to make money. To find the ROI percentage, divide by the cost of investment.
Employers usually pay their employees bi-weekly or monthly. Their schedule is not random, however, nor is it just a matter of convention. Employee paychecks must be delivered according to each state’s per-determined timeline.
Employers cannot lawfully decide to pay employees whenever they want. They cannot make up a rule which issues checks every two months, for example. Some states don’t even allow for once per month pay checks. It is a good idea to know your state’s payday requirements so that you don’t ruffle any feathers and end up in court.
Follow this link on the Department of Labor website for a table of state payday requirements. Every state has slightly different requirements.
This guest post was brought to you by Joe Elton on behalf of Linkury – helping small businesses maximize their profits.
If you are like most small business owners, your aim is to turn your small business into a big business. However, on the way to getting there, you will surely face many challenges that you must overcome. During this process, you will discover a lot about yourself and whether or not you are in fact cut out for expanding your business.
The Flaw of Averages
When most people think average, they are thinking of a specific type of average called the arithmetic mean. But there are actually three different types of averages: the mean, median, and mode.
Many business owners like to convert overtime to comp time both to save money and to give employees an optional benefit, but beware; this practice might get you into trouble.
Converting overtime to comp time is fine if you are a government employer but private sector companies have no legal right to do this. (Take a look at the Department of Labor website for detailed information on this.) For non-exempt employees, employed by a private company, employees must be paid overtime at 1.5 times the rate of pay. This cannot be transferred as credit for days off. It must be paid through payroll.
However, government employees and salaried employees may use overtime in exchange for time-off.
There are a few problems relating to percents that anybody might come across in everyday life and want to solve. I am going to show you how to solve a few of these problems, no matter how they are presented, whether it be to find the percent of a number or to find the answer to a percentage word problem. You will also learn how to easily find a percent increase.
This guest post was brought to you by Jeremy Smith. Jeremy is an experienced tax analyst. He often blogs about the ins and outs of filing taxes for the everyday person to understand
Uncle Sam must be pretty needy. You know the one – the red, white, and blue. Yeah, the taxman. Every business owner needs to understand how to file their quarterly estimated taxes. However, most small businesses are confused when it comes to paying these. Make no mistake, if you fail to file, it’s treated as though you didn’t pay your taxes and the IRS may come after you.