Six Tips to Get Your Small Business Finances in Order Before Year End
According to the 2018 RBC Small Business Poll, almost a third of small business owners said that maintaining cash flow and staying on top of business administration was their biggest concern when running their business. As the end of the year quickly approaches, there is no time like the present to organize your business finances and start with a clean slate in the new year.
Jason Storsley, Vice-President of Small Business at RBC offers the following tips:
- Separate Your Accounts
Opening a business bank account will allow you to keep your company and personal finances separate. Apply for a business credit card to make it easier to track company expenses and look for one that offers points, cash back and other benefits to take advantage of any rewards.
- Set up Pre-Authorized Payments
Use your business credit card to set up pre-authorized payments for monthly expenses such as internet and utilities. This will help build your business credit, ensure you never miss a payment, and free up your monthly cash flow.
- Go Paperless
Have invoices and bank statements e-mailed to you and file them on your computer. If you don’t have a separate backup system, invest in an external hard drive or use a secure cloud service to protect your files in case of a computer crash.
- File Receipts
Don’t let receipts pile up on your desk. Use a banker’s box and file folders to store bills and other business papers. Organize the files by major categories – office supplies, transportation, entertainment, and others – and clean out your wallet and briefcase at the end of each week to make sure everything is accounted for. You can stay on the paperless journey by taking photos and naming receipts for easy online filing and searching.
- Update Your Business Software
To manage your books, select a good accounting software program. There are many to choose from, and some offer the added benefits of invoicing, time tracking and expense management. With some online versions, you can even sync directly with your bank account to further simplify accounting. In today’s mobile world, the ability to make payments online, anywhere, anytime enables business owners to save time and stay on top of their finances on the Talk to your bank about the mobile banking options available to you.
- Review your accounts on a regular basis
Be sure to log in to your business accounts weekly to review them for any unauthorized transactions, just as you would with your personal accounts. This is the best way to protect your growing business.
Lastly, be proactive and introduce yourself to the managers at your local branch to learn more about the services your bank offers. Even if you don’t need a line of credit or other business financing today, it’s helpful to build relationships early and learn about the resources and tools available to you should you want to expand your business and need these services in the future.
For more information, visit www.RBC.com/beyondbanking