Whether we like it or not, money management is a crucial part of running a business. This applies to any business of any size. Aside from sales, marketing and management, half the challenge of successfully growing your business is managing your short-term and long-term finances. Luckily, you don’t need to be a financial guru to get your finances in order. All it takes is common sense and a little help from the experts.
To simplify your money management for you, we’ve sourced the top 6 tips for managing your business finances:
1. Separate Personal and Business Finances
Mistake #1 made by many small business owners is mixing business with pleasure, in other words, using the same bank account for personal and business use. As soon as you set up shop, open up a new bank account in your business name. This way, you’ll be able to track expenses, assess profitability, and avoid unnecessary tax disasters and unexplained losses. Consult a financial expert to decide what type of account works best for your business, don’t feel obliged to commit to your existing bank (shop around), and get your paperwork in order.