When it comes to business money it’s all about paying employees, paying the bills and tracking how much money you are actually making. There are many legitimate reasons that businesses hire out payroll and have a business accountant, it’s a lot of work.
When you own your own business you still need to be concerned with some of these things. You may not have employees, but you still have bills to pay. You still need to keep track of your income, profit, and put money away to pay your taxes.
When it comes to money for businesses the things you use to pay for stuff are pretty similar to what you pay for your normal everyday personal bills. However, you have specific business accounts because mixing business money with professional money is just asking for trouble.
The Business Checking Account
You don’t want to use your personal checks and personal checking account to pay business bills. While it may seem easier to write all your bills out of one checkbook, you may be spending up your grocery money and then you’ll have to dip in to work funds to make up for it.
If you having someone else tracking accounting dipping into work funds, no matter how innocent, can look very suspicious. If you are self employed you should get a dba, at least, and a specific bank account for that business. It helps.
Spending With Plastic
Many people still use credit cards like free cash, but it’s important to remember that you need to pay that money back at some point or it will ruin your credit. Even if you don’t have any personal business cards you may want to have a business credit card that you can use to pay bills more conveniently and to order supplies when needed.
Business credit cards can actually be a great asset, especially to small businesses. Do some research before you pick a card so you can get the best interest rates and the lowest fees. Your business card should only ever be used for business, and it can help build up your new business’ credit as long as you keep it paid on time.
All The Online Options
It also pays to have online payment accounts. If you ever hire a freelancer to help with your business you may find it easier to pay them via Paypal, Vimeo, or WePay, than it is to send them a check in the mail.
Your business account on Paypal can have your business credit card attached to it for easy access when paying for orders online. You can also get a Paypal debit card that can be used like any other debit card and takes money directly from your Paypal, or your attached alternate payment option.
Money is the basis of your business. It is what got you started and it is what keeps you going. Make sure you have every possible option when it comes to using your hard earned money and keeping your business on the go.