Are mixed accounts hurting your business?

Are you still using one account?

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Small business banking is essential for effective financial management, and one of the most common mistakes small business owners make that I’ve seen in the past year is mixing personal and business accounts. This creates confusion in bookkeeping, complicates taxes, and can even lead to legal risks. Let’s work on a few things this month.

Here are five strategies I put together recently to take your business banking to the next level this year and to make sure you are managing your banking the right way.

1️⃣ Choose the Right Bank
Not all banks cater to small businesses. Look for options that provide low-fee or free business checking accounts, easy access to lines of credit, and services like merchant accounts. Online banks can also be great for lower fees and user-friendly tools, so explore your options carefully.

Try your local banks vs large corporate banks if you don’t want to maintain a specific balance or pay for the account. There are options! It’s also what I use here locally in the Kentuckiana area.

2️⃣ Use Digital Tools
Banking apps and accounting software are your best allies. These tools sync with your accounts to categorize expenses, monitor cash flow, and track balances in real-time. Automation reduces errors and saves hours of manual work, helping you focus on growing your business. Most accounting software you have will integrate with your bank and lines of credit. Ask these questions up front and do some research!

3️⃣ Open a Business Savings Account
Cash flow emergencies happen, and having a financial cushion can save the day. A separate business savings account helps you plan for unexpected expenses, from equipment repairs to slow sales periods, without jeopardizing your operating funds. This doesn’t have to be something you put into each week, but I do suggest setting money aside somehow to cover yourself if ever needed. Set a goal for the year.

4️⃣ Monitor Cash Flow Regularly
Set aside time weekly to review your business’s inflows and outflows. Regular reviews help you identify trends, avoid overdrafts, and make more informed decisions about upcoming expenses or investments. At minimum, monthly. If you have much volume on the AR/AP side at all, weekly. Give me a shout if you want a free template on how I’d track cash daily for your business. I’ll help get you started off on the right foot this year. But if you are not tracking cash flow as a business owner/leader, it’s time to make a change….like yesterday!

5️⃣ Build a Relationship with Your Banker
Your bank is more than a place to hold your money—it’s a resource. Cultivate a relationship with your banker so they understand your business. When you need tailored advice, a loan, or special services, that relationship can open doors. I have great relationships with several banks in our area (southern Indiana and Kentucky) so if you need an introduction please let me know.

New year, new insurance….credit cards….bank accounts…investing…?

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FREE COLLECTIONS GUIDE!

As we kick off the new year, I wanted to reshare the Collections Guide I have and give out to new subscribers. This is a great time to reset and rethink your approach if you carried high past due dollars during 2024. I’m here to answer whatever questions you have as well through my online community, here. I think you will be SHOCKED at how low cost this is for you as a business owner… 🙂 

How can we help your business this year? Whether it’s recurring services or a 1-2 time catchup during the year, I want to be the one you reach out to for guidance. I’d love to get some time on your calendar to discuss options, what you could use help with, and how we can work together!

BG

Don’t forget to share this week’s newsletter with your network!

These are a few other newsletters I enjoy that you may find interest in as well!

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If you just scrolled through and didn’t really digest anything that’s ok!

TLDR:

  1. Choose the Right Bank: Opt for banks offering low-fee business accounts, credit lines, and merchant services. Consider local banks for fewer balance requirements or online banks for lower fees.

  2. Use Digital Tools: Leverage banking apps and accounting software for real-time expense tracking, cash flow monitoring, and automation to reduce errors and save time.

  3. Open a Business Savings Account: Keep a financial buffer for emergencies or slow periods by saving into a separate account, even if sporadically.

  4. Monitor Cash Flow Regularly: Review your cash flow weekly or at least monthly to spot trends, avoid overdrafts, and plan for future expenses or investments.

  5. Build a Relationship with Your Banker: Develop a rapport with your banker for personalized advice, loan facilitation, and access to special banking services. Networking in your local area can help.

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