Whether you have a head for finance or not, managing your small business banking affairs can be difficult. Finding the service you need, securing loans, and keeping accounts in order are all important tasks that require your attention. Business is very much a numbers game, and your success or downfall will largely depend on how you handle your business’s numbers. Remember these great tips for small business banking to keep your finances under control at all times.
- Don’t Mix Business with Personal
Failure to keep business and personal finances separate is the cardinal sin of small business financial management. When it comes time to get your finances in order for taxes every year, you’re going to be kicking yourself if your business expenses and income are mixed in with your personal finances. Open new bank accounts and lines of credit in your business’s name. You are not the company, and you shouldn’t be sharing your accounts with it.
- Choose Your Bank Carefully
Always remember that banks are businesses, and every business has profit on its mind. A bank can be your friend, or it can take advantage of you. In the worst case scenario, it won’t be able to meet your needs at all. Choose your bank carefully, based on your needs. Think about the kinds of service and features that are important to you, and narrow down your choices to the banks who can fulfill your requirements. Some banks are better than others at working with small businesses, so be sure to shop around.
- Keep Clear and Organized Records
Organization is endlessly important in business. If your business is not organized, it will never be able to achieve its fullest potential. Be sure to always keep clear and organized records of your financial transactions. Receipts, statements and relevant paperwork may all come in handy down the line, so figure out an organizational system that will allow you to keep those documents on hand. Spend some time every week going over your banking affairs to make sure all financial matters are balanced and organized.
- Get Friendly with Your Banker
Your relationship with your bank may last for years if you’re getting the service that you need, so try to build a relationship with your banker. The benefits of a positive banking relationship are almost too numerous to list. When your banker understands your financial situation as well as your business, you’ll be able to get more flexible and favorable terms on your accounts. Should you need a loan down the road, or even just cheap business checks, you’ll be much more likely to get a good rate from a banker with whom you have a positive relationship.
- Open a Business Savings Account
A savings account for your business is always a good idea. Here, you can set aside money for taxes, build an emergency fund, or save for your next big business development. When the money starts coming in, it’s extremely important that you know where to put it. A business savings account will help you grow your funds while keeping all of your banking affairs simple and organized.