Running a small business often means working with a mix of people: some full-time staff, part-time helpers, seasonal workers or project-based contractors. While this flexibility helps manage costs and workload, it creates a crucial decision point that many business owners underestimate: properly classifying each worker. The stakes couldn’t be higher. Companies like FedEx have paid nearly half a billion dollars for getting this wrong, and even tech giants like Microsoft and Lyft have faced costly legal battles over worker misclassification. Why Classification Matters More Than You Think The difference between an employee and an independent contractor goes far beyond semantics; it fundamentally changes your legalRead More →

Liquidity looks at how well a company can handle paying wages, inventory, and lending repayments via measuring its cash or quasi-cash levels. Put another way, it looks at the health of a company’s cash flow to satisfy short-term financial obligations. It’s important to be mindful of different sectors and what’s normal or healthy based on the time of year. For example, retail and manufacturing feature functionally focused companies, which means seasonality impacts their dynamic working capital requirements. 1. Current Ratio The current ratio looks at the ratio of current assets divided by current liabilities. It measures how well a company is projected to pay itsRead More →

If you are in the market for a new job or are interested in extracting more value from your current one, consider some of the newer trends in company benefits. The following is a primer on what might be available to help supplement your income with your current employer or benefits to look for when considering a position with a new company. The standard employee benefit package usually includes insurance (healthcare, dental, disability, life), retirement plans, and paid time off. In addition, federally mandated employee benefits include unemployment insurance, workers’ compensation, and family and medical leave, plus employers are required to deduct and submit FederalRead More →

Right smack dab in the middle of summer might seem like the worst time to think about your taxes, but it’s actually the perfect time. Here’s what taking a pause in July allows you to do. Get Organized Do you have all your receipts? Are your records up to date? Did you move, get married, or change your name? If so, you’ll need to notify the IRS. In fact, you can create an individual IRS online account to look at your tax records, manage communication preferences, make payments, and more. Take a Financial Snapshot When was the last time you looked at your checking, savingsRead More →

The rapid pace of technological change, particularly the integration of artificial intelligence (AI) in daily workflows, is reshaping the global economy and the nature of work. Today’s digital divide is no longer limited to internet access in underserved communities. The divide has now become a business risk impacting productivity, inclusion, and competitiveness. What is the Workforce Digital Divide? The digital divide refers to disparities mainly in access to technology and digital skills. The groups affected by this divide include older people, frontline employees, lower-income staff,f and people in rural or underserved urban areas. In the workforce context, the digital divide includes a lack of proficiencyRead More →

HALT Fentanyl Act (S 331) – On Jan. 30, Sen. Bill Cassidy (R-LA) introduced this bipartisan act in order to close a loophole that allowed clandestine drug manufacturers to evade illegal drug laws by altering the chemical composition of fentanyl. The legislation permanently classifies all versions of fentanyl as a Schedule I substance, much like heroin and LSD. The bill passed in the Senate on March 14 and in the House on June 12. It currently awaits the president’s signature for enactment. TAKE IT DOWN Act (S 146) – This legislation was signed into law on May 19. Introduced by Sen. Ted Cruz (R-TX) onRead More →

Working capital is the difference between a business’ current assets and liabilities. Negative working capital can happen when a business’ current assets are below its current liabilities. Therefore, working Capital = Accounts Receivable + Inventory – Accounts Payable. It’s a way to measure a company’s ability to meet short-term liabilities, such as managing inventory, satisfying vendor bills, etc., and how well its longer-term investments are implemented. When a business has a surplus of current assets against its current liabilities, it’s said to have positive working capital. Generally speaking, when it’s positive, the business is able to service liabilities over the next 12 months, putting itRead More →