As a small business owner, you know that finances are critical to the sustained success of your company. Here are five easy ways to simplify your finances so you can focus on what you do best – grow your business.
1. Separate Your Accounts
Opening a business bank account will allow you to keep your company finances separate from your personal ones. Apply for a business credit card to make it easier to track company expenses. Most major banks provide several options that offer points, cashback, and other benefits so you won’t miss out on any rewards.
Build your business credit, ensure you never miss a payment, and free up your monthly cash flow.
2. Set up Pre-Authorized Payments
Use your business credit card to set up pre-authorized payments for monthly expenses such as internet and utilities. This will help build your business credit, ensure you never miss a payment, and free up your monthly cash flow.
3. Go Paperless
Have invoices and bank statements e-mailed to you and file them on your computer. If you don’t have a back-up system, invest in one or use a secure cloud service to protect your files in case of a computer crash
4. File Receipts
Instead of letting receipts pile up on a corner of your desk, get a banker’s box and file folders for storing bills and other business papers. Organize the files by major categories – office supplies, transportation, entertainment and others – and clean out your wallet and briefcase at the end of each week so you don’t misplace any. This will make filing at tax time much easier.
5. Invest in Business Software
To manage your books, select a good accounting software program. There are many to choose from and some offer the added benefits of invoicing, time tracking, and expense management. With some online versions you can even sync directly with your bank account to further simplify accounting. Also, in today’s mobile world, the ability to take payments online or on the spot can help your business stay competitive. Talk to your branch about the mobile banking options available.
It’s also a good idea to introduce yourself to the managers at your local branch and learn more about the services offered by your bank. Even if you don’t need a line of credit, business loan or other financing now, it makes sense to get to know bank personnel in case you want to expand your business and need these services in the future.
On a final note, be sure to log in to your business accounts weekly or monthly to review them for any unauthorized transactions, just as you would with your personal accounts, to protect your growing business.
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This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.