4 Financial Necessities of Every Modern Business
Saturday, May 9, 2015, 6:00 AM | Leave Comment
Owning a business can be a very rewarding way of life. But it can be especially challenging in the 21st century, with all of the technology at our disposal. You can easily reduce some of these challenges by using tools to help your business run more smoothly.
Let’s discuss a few things that any business in today’s world cannot succeed without.
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Business Checking Account
Many small business owners, running their business as a sole proprietorship, have a tendency to mingle their personal funds with their business funds.
This is a disaster waiting to happen, because at the end of the year, whoever prepares your taxes will have to do a lot of bookkeeping to separate the two.
Much simpler to just get a business account in the first place and save all that extra bookwork later on.
If your business form is a partnership, an LLC or a corporation, then you don’t have that choice.
You must open a business checking account in the business name or you won’t be able to receive income in the name of the business.
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Merchant Account
Today’s society relies heavily on electronic transactions, primarily in the form of debit and credit cards.
If you don’t have a trusted and reliable way to accept credit cards, you stand to lose a large chunk of business.
The best method for taking credit cards is to have your own dedicated merchant account.
This is separate from any business checking (or savings) accounts you may already have; it is a high risk credit card processor account.
Your bank or service organization can provide you with this in option in order to accept credit and debit transactions.
Fees can vary wildly between service companies, so be sure to shop around to get the best rates that you can find.
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Business Address
This is simple is your business is retail or manufacturing; you simply use the address of where your store or facility is located.
An enormous amount of people are starting businesses from home; one of the pitfalls can be using that home address as a business address.
The local zoning laws may prohibit that, or they may tack on higher fees for an office being run out of a home.
Additionally, your business address will be public in a large number of places, especially online. You don’t necessarily want your home address to be that public. A Post Office box, or a commercial private mailbox, can be rented for a small monthly fee.
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A CPA (Certified Public Accountant)
Some people would suggest that a business just starting out must have an attorney on retainer, but a lawyer is not the most important professional to have in your corner.
All thriving businesses have money coming in and going out, and who better to manage and direct that cash flow than a CPA?
The tax code in America is enormous, and there is no way that every small business owner can know all the twists and turns within.
I’m not saying you have to talk to your CPA every week, or even every month – once per calendar quarter should be sufficient (and required if you have employees).
Owning a business does not have to be a headache, or a bad experience. With sufficient planning and foresight, it can be a very enjoyable and rewarding experience.
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Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise.
Meghan also enjoys researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure.
