The time to start preparing your small business finances is now. It might be tempting to put it off, but that will only make things more difficult for you in the long run. There are three ways that you can make the most of your small business finances right away so you don’t have any regrets later on.
1) Set up a business checking account
A lot of small business owners set up their personal bank accounts to manage the finances for their company. While this is easy and convenient, it can lead to problems down the line when you start running into issues with overdrafts or other potential financial errors that might be attributed back to your company’s transactions on your personal account.
Setting up a separate business checking account will help you keep your finances in check, and it gets even better when you sign-up for the right type of bank accounts. If you’re looking to take advantage of widespread ATM coverage, online banking features like bill pay, or the ability to accept credit card payments from customers using Square Point of Sale, then look no further than Ally Bank’s Business Checking Account. With these services at your fingertips, managing your small business’ finances is simple!
2) Pay yourself last
A lot of business owners are tempted to pay themselves first by drawing money from their company’s bank account for their personal expenses. While this might work in the short term, it can cause issues down the line when your employees don’t get paid or extra fees start hitting your business’ accounts because you’re spending more than you should be. It also doesn’t help that failing to do so could result in getting hit with heavy penalties if Uncle Sam comes knocking on your door asking about unpaid taxes.
Instead, make sure that you’re paying yourself at the end of every month after all other financial obligations have been met. This way, everyone gets paid and there won’t be any charges associated with dipping into funds before they’re owed.
Of course, paying yourself isn’t always easy especially when you don’t have the money to do so. Thankfully, there are other ways that you can make sure your business’ finances stay afloat like using factoring companies which allow small businesses (and even startups) access to fast cash without having to give up equity or risk losing credit card sales because you don’t have enough capital on hand.
3) Factoring is an excellent way for small businesses and startups to get paid quickly while allowing them to continue growing their operations instead of worrying about where else they’re going to find funds in order to keep things running smoothly. In addition, it’s a great option if Uncle Sam comes knocking for unpaid taxes since it allows you to pay your employees and all other expenses while waiting for the funds from a tax refund.
In conclusion, there are three ways that you can make the most of your small business finances. These include setting up a separate business checking account, paying yourself last, and using factoring companies so you have access to fast cash when it’s needed. So what are you waiting for? Start preparing today!