In Partnership with GreenPath Financial Wellness
Owning a small business comes with satisfying rewards like being your own boss, making your own schedule, and doing what you love. However, with these benefits comes the responsibility of money management. There are best practices for setting up a new business bank account and managing your small business accounts that can help your business thrive in the long run. Read these tips to guide the foundation of your financial success:
Build a Budget: To lessen the risk of overspending, plan for your expenses in your business checking account. This includes fixed costs like rent and utilities, variable expenses such as supplies, and one-time purchases like equipment. Remember to account for taxes and an emergency fund for unexpected expenses.
You can track expenses using a manual bookkeeping system, or you can take advantage of budgeting tools for businesses that can ensure your budget is precise and strategic. We offer some free resources to help you track your budget including access to Autobooks for all customers with small business bank accounts.
Separate Accounts: Operating your business using your personal checking account puts you at high risk. Opening a separate business checking account and credit card for your business keeps you organized and protects your personal assets from liabilities in the event of legal issues or bankruptcy. Keep your small business accounts for business expenses only.
Manage Debt Wisely: A personal loan may be necessary to finance your operations or expand your business. However, high-interest rates can do more damage to your profits and credit. Choose your financing options wisely, and consider our non-predatory small business lending options. We not only offer loans at competitive rates, but we’ll work with you and your financial needs to ensure lending benefits your goals, not hinders them.
Plan for Emergencies: Building an emergency fund provides a buffer during difficult times and allows you to withstand temporary setbacks. Strive to set aside three to six months’ worth of operating expenses in a dedicated savings account. We’re one of the few banks in NY that offers the best savings account online. An emergency fund is meant as a last resort, so try not to take money out unless absolutely necessary.
Evaluate your Finances Regularly: Checking in on your budget can help you adjust accordingly as your business evolves. With your Spring Banks small business accounts, you can access free professional guidance from financial advisors and experts at GreenPath Financial Wellness, who can help you navigate your finances and stay on track with your goals.
Contact us to learn more about opening a new business bank account and our other free money management resources.
This content does not constitute tax or financial advice. It is advisable to seek guidance from a licensed professional tailored to your individual circumstances.
