One of the most important things you will have to do when you start your own business is open up a business bank account. It is important to keep your business banking separate from your personal banking. It can become confusing if you just try to keep separate records.
Having an isolated daily bank statement can help you understand how your well you business is doing. Seeing all your income and expenditure in one place can give you an idea of how your business is doing.
One of the best ways to know how a business is doing is to look at their bank account and see where the spending trends are. It is important that you are reviewing your statements on a weekly basis to ensure that there are no errors or fraudulent transactions. Keeping track of items paid for that have yet to hit the bank and any money in that has not come through yet. These quick adjustments will help you stay on top of your cash.
Cash is the lifeline of all business big and small, so keeping your eye on it is a priority. Cash planning is key to a successful business.
- Agree clear payment terms with your customers, ensure that they stick to them.
- Negotiate terms with your suppliers, ideally you will want your customers on shorter payment terms that your suppliers.
- Get your invoices out quickly
- Make it easy for your customers to pay you.
- Profit is good but Cash is King
Let us help you keep on top of your cash and banking requirements here at Accountancy & Beyond contact us here.