As a business owner, there are some important foundations that you really should have in place in your business.
These foundations are the parts of your business that will help it run like a well oiled machine. And make it so much easier for you and anyone else on your team.
But having the money foundations in place aren’t something that most business owners tend to think about.
So what are these foundations that you really need to have in place?
Business Bank Account
The most important thing of these foundations is to have a separate bank account for your business.
Your business transactions should not go through your personal account and personal transactions should not go through your business account.
Keep them all separate and pay yourself a regular salary in your business.
Need help finding a bank account for your business? Check out this guide to finding your business bank account.
Ways to Collect Payments and Deliver Your Products
There are so many options today for you to collect payments in your business.
Check out this guide to many of the options to collect payments.
You want a system that is easy for you, and covers everything that you need it to cover.
If you sell products and even courses, you also want to find a system that integrates with your payment system to help you deliver the products and courses to your buyers.
For many people I’ve worked with, and myself included, this system between payment and delivery needs to be as easy as possible.
There are multiple systems out there that have an all in one option, and you might consider one of them.
System to Put Money Aside for Taxes
This is a system that you most likely don’t want to implement.
But if you put aside money every week in your business, then it will be much easier to make your estimated tax payments.
Part of being a business owner is paying taxes. There really isn’t a way around it.
So make it easier on yourself by setting aside the money each week into a savings account.
Savings accounts may not usually earn a lot of interest, but you can still earn money on the money you set aside. It’s always a good thing to make your money work for you.
Reminders to Pay Your Taxes by their Due Dates
Now that you are regularly setting money aside for taxes, you also need to remember to pay your taxes by the due dates as well.
Put the reminders in your calendar. Or schedule emails to yourself that taxes are due.
Do the thing that works best to schedule your tax payments so that you remember to make them on time.
A Cash Flow Plan
How are you going to make cash flow into your business? What does your plan look like?
Also remember, cash flowing into your business does always equal profit or the amount of money in the bank.
When you have a cash flow plan created and in place, it makes your marketing so much easier. You know what you need to sell in your business, so you can just create your marketing plan around that.
This is absolutely required. It doesn’t matter if you use a system like Quickbooks or Freshbooks or you use a spreadsheet.
But you must regularly do your bookkeeping.
Your bookkeeping will also help you with your cash flow plan and analyzing your business on a regular basis as well.
Your business finances can tell you a lot about your business, but you have to regularly do your bookkeeping and look at the numbers.
If you don’t have the time or fully understand your bookkeeping, then you need to hire someone who can do your bookkeeping for you.
You must have a bookkeeping system in place and have your bookkeeping done regularly in your business.
Business Credit Card or Line of Credit
It is recommended that you have a business credit card or line of credit. But not required.
For the business credit card, though, you can use a personal card. Just make sure that no other purchases but your business purchases go on this card.
Use a separate card for your business than what you use for personal uses.
System to Pay Yourself
You should definitely pay yourself from your business.
You need to create a plan where you get paid regularly, basically like you are receiving a paycheck from your business.
If you want to pay yourself weekly, every 2 weeks, once a month, the frequency is totally your choice. But keep the frequency the same.
Each time you pay yourself, you also need to make sure you have payroll taxes set aside as well for the amount of pay you are receiving.
Do you have your business money foundations in place?
If you don’t have these money foundations in place, you do risk your business not going very well and possibly even failing.
I want you to have a successful business, so make sure you have all of the foundations in place.