Money Management Basics For New Business Owners

Money makes the world go round, so they say, and that is especially true in business. You need to have a handle on your finances; otherwise, you are liable to face trouble down the line. From dealing with clients to managing your taxes, there is a lot you need to give careful consideration to.

So if you are just starting out in business, here are some of the money management basics you need to have in place.

Business banking

You should separate your business and personal bank accounts, otherwise, you run the risk of getting into a financial muddle. You could apply for a business account online, and apply for a cash plus card which offers many benefits, or you could go down the traditional route and use a bank on your local high street. Application methods are quite similar, so you will need to choose a name and register your business, and have a business plan in place. Shop around for the best deals available, and consider the range of services that banks and credit card companies can offer you.

Managing your books

You have a lot to contend with in the running of your business, so the accounts side of things may be something you prefer to hand over to somebody else. A bookkeeper or an accountant will help you manage your books, giving you time to place your priority on other matters within your business. However, if you would rather forego the extra expense in hiring an outside professional, there is accounting software available that are relatively easy to use. Take a look at Quickbooks as an example. Their software allows you to create invoices, keep track of expenses, and help you complete your tax assessments.

Dealing with customer payments

There are a number of ways you can take customer payments, and to retain their custom, you need to make the process as simple as possible for them. PayPal is a popular choice when making transactions online, and is a quick and easy way to transfer money. When involved in a retail business, you need to have the ability to deal with card payments electronically with a card reader. Alternatively, you could install a debit card terminal in your store, but you will need to pay a monthly fee for the privilege.

Managing clients

When you offer a particular service to clients, you will want to make your payment terms clear, so you get paid on time. They should be laid out in a clear to read format, and used as the basis for a formal contract to help you legally should the client refuse to pay up. Get into the habit of asking them for a deposit before you begin work for them, and consider asking for progress payments, so you don’t leave yourself open to financial risk.


There is more to managing your money than what we have considered here, but use the above as a basic source of information to get you started.

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