Dealing with the legal aspect of a business is never fun, but if you take the time to learn and do it right then you won’t be stressed later down the road. After you’ve dealt with all the tax and business paperwork, it’s a good idea to start thinking about a way to keep all the business numbers organized. This post will explain why your small business needs a business account and bookkeeping software to help keep your business up and running.
Set up a Business Bank Account
If you haven’t opened a separate bank account exclusively for your business, now is the time to do it. You can open an account through your current bank or look for a new bank that might provide perks for businesses. You may be asking: Why do I need a separate bank account?
For one, most banks do not allow you to use your personal account as a business account in their terms and conditions. Your bank may actually close your personal account, which can really hurt your business if you can’t receive payments or pay your bills. Another reason is that when you mix your two bank accounts, it’s possible that you are putting yourself at risk for a lawsuit that would involve your personal assets mixed in with your business ones. Also, it is federal law that an LLC or corporation must have its own bank account in its own name.
A business account allows you to keep everything organized in one place. You should accept all your payments and pay all business expenses through the account. When it’s time to pay yourself, you can set up a direct deposit into your personal account. This makes accounting so much easier because you won’t have to sort through all the personal transactions.
Some banks offer perks to anyone who opens a business account. Certain banks will waive monthly service fees, pay additional interest and even offer unlimited transactions. It’s important to really take the time to find the right bank for your business account.
Bookkeeping
Now that you have a business account, you should look into accounting software. Quickbooks, GnuCash and TurboCASH are all excellent choices in keeping your business records organized. Bookkeeping software helps to record and process business transactions. It’s like having a personal accountant.
This is another aspect of your business that you’ll want to research. There are a lot of bookkeeping options out there. You’ll have to evaluate how easy it is to use, if they offer customer support, will it grow with your business and how many hours it will save you.
Not all bookkeeping software offers the same benefits. They can do things like form bank account connections to stream your business account right into the software, create an online ledger, send mobile notifications, create a pay roll, help speed up tax preparations and even help you with inventory numbers.
Hire an Accountant
When your business grows, you will want to consider hiring an accountant. Accountants can make life a lot easier. You don’t have to hire one to help you out full-time, but it might be a good idea to at least gain a few hours of their time. You might not feel like it’s worth the money or it’s too expensive, but an accountant will help save you a lot of time doing certain tasks like taxes.
An accountant will also provide you with sound small business advice, and they can also give you legal advice as well. Also, an accountant can help you with your finances if you need additional help with your business numbers.
Don’t fret about hiring an accountant right away. You may not ever need one. Just know that it is an option to help you out if your company grows larger and you find yourself having a hard time keeping up with the numbers. They can make your life a whole lot easier. Leaving the financial details to an accountant will allow you to free up a lot of your valuable time.
In conclusion, it’s a smart idea to not only have a business bank account but you should have a way to keep track of all your business numbers. You’ll thank yourself later on down the road.
