There is no doubt that accounting is the backbone of a business. Establishing an effective accounting setup to accelerate and maintain substantial growth is important. The following steps were carefully created with you in mind to give you and your business the key to success. The following should be seriously considered to start your business with a healthy financial approach:
- Open a Business Bank Account: This step should be taken once your business is registered. This is also a legal requirement whether you register as an LLC or a Corporation. Even though it is not required for Sole Proprietors, we strongly recommend you open a business bank account. Separating personal banking from the business is important because it helps your accountant, you, or your bookkeeper easily monitor and manage your business’ finances. Additionally, it helps you keep a clean record, and makes tax season less complicated. It also provides you the opportunity of creating financial statements. Tips for opening a business bank account:
- Do your Research and Shop Around: As an entrepreneur or an established businessperson, your time is money. Make sure the bank you select provides the services, benefits, and accessibility you need in person and online. Be aware of the fees the bank charges for services, maintenance, and transactions and how frequently they would be imposed on you or your clients, depending on the type of business you own.
- Open a Business Checking and Saving Account: Keeping the business income organized is very important. Revenue should be kept in your primary checking. You should save a percentage of your revenue for other projects, tax owed for the year, or any other business expenses. Note: A checking or a savings account is only one available option. Depending on your business goals, you can have as many accounts as you need.
- Business Credit Card: When we talk about separation, we mean it. Building your business credit rating is a financial health necessity and legally necessary. Shop around and compare your choices and benefits.
- Method of Payment: Technology has allowed us to collect revenue in non-traditional cash register methods. These methods are very helpful for the growth of businesses if they are used. It is also a great assistant for bookkeepers and accountants for recording purposes. Below are some of the methods of payment that a business can adopt. You can also do a combination of them depending on the business needs.
- In Person Payments Method & POS System (Point of Sale)-
- Online Payments Method & POS System (Point of Sale)-
- Cash or check Method
