Hi, friend! Today, we’re diving into exactly how to set up your business finances for success. I always say that cleaning up messy bookkeeping is like untangling necklaces. If you throw them all into a jewelry dish, you’re going to waste 30 minutes before your next date night yanking out that one that you want to wear for the night.
So set it up correctly from the beginning, maintain the system, and thank yo’self later. Here’s what you gotta do! ?
First things first, let’s talk about bank accounts. It’s essential to have a business checking account and a business savings account that are entirely separate from your personal ones.
I’ve had business friends who put this off for entirely too long… then finally did it and breathed a huge sigh of relief! Trust me when I say that getting this done is a massive step in the right direction.
This separation is not only good for tax purposes but also helps you see your business’s financial health clearly. It’s like keeping your pantry #cleanTok organized – everything is easier to find and manage! (And your bookkeeping becomes a breeze without having to sift through all of those personal transactions!)
Next up, let’s link that business checking account to a credit card processor so the payouts go directly to your bank. This is where the magic of efficiency comes in. Linking your accounts to a processor simplifies invoicing and payouts, so you can ditch having to collect check payments and deposit them manually at the bank.
Don’t be afraid of the fees. Paying Stripe and PayPal their fees for processing your clients’ credit cards is like a thank-you gift for not having to collect cash or check. Remember – they are businesses, too!
Now that you have your new separate business checking account, you should have received a debit card for the account. Make a list of all of your expenses, then go into each of the platforms and update your billing information with your new debit card.
Bonus points if you set up auto-pay so you don’t even have to think about it! (Bonus bonus points if you switch your subscriptions to annual vs. monthly for extra savings!)
Last but certainly not least, consider getting a small business credit card. But here’s the deal: promise me (and more importantly, promise yourself!) that you’ll pay it off one to two times each month. Treat this credit card like a trusted friend – use it wisely and always settle up. By doing this, you’re not just building credit; you’re building financial discipline, which is priceless.
And there you have it, folks – your roadmap to setting up your business finances correctly. Remember, managing your business finances isn’t just about numbers; it’s about making your business dreams tangible and achievable. So go ahead, take these steps, and watch your business thrive. We’re rooting for you every step of the way!
You can always find us hanging out on IG if you have any questions! We’re always a DM away and happy to help you get started!