5 Money Tips for Business Owners

Updated on January 26th, 2022
Keep Calm When Your 401(k) Crashes

One of the most important things you can do as a business owner is to pay attention to money management. If you want your business success to turn into personal financial success, you need to be aware of what is going on with your money. Here are 5 money tips business owners should remember:

1. Separate Business and Personal Accounts

First of all, you need to keep your business finances separate from your personal finances. Your business should have its own bank accounts, and you should make it a point to use different accounts — including credit cards if you can — for your business expenses. As much as possible, your personal finances should be kept away from your business finances. Even if you end up having to write yourself checks, maintaining this separate is vital.

2. Set Up Regular Invoicing Policies

One of the best things you can do as a business owner is set up regular invoicing policies. Look for the right invoicing tool for your business, and make it a point to invoice on time, and do so accurately. You want your clients and customers to pay as quickly as possible, and you invoicing policies can make a big difference.

Your invoicing tools should also be compatible with your bookkeeping software. There are plenty of tools out there, including Due.com, that can provide you with integration with your bookkeeping software, including QuickBooks.

3. Get Proper Insurance Coverage

This is one of the money tips that is often overlooked by business owners. However, the right insurance coverage is vital if you want to protect your business and finances from problems. Liability and property insurance can help you protect your business assets as well as your personal assets.

You can also get other types of insurance depending on the type of business you run. You might find that income protection insurance or errors and omissions insurance can help you stay ahead of the situation if your business is put at risk by natural disaster or by claims that you gave wrong advice. Consider the possible claims that can be made against your business, and get the right coverage.

4. Consider an Accountant and/or Lawyer

While it’s tempting to do everything on your own as a business owner, the reality is that sometimes you need professional advice. You might think that this doesn’t make sense in a list of money tips, but the right help can save you money in the long run, since your lack of knowledge and expertise might be very expensive. Plus, the right team members can free you up to focus more on growing your business and increasing its profitability.

A good accountant can help you set up your business properly, and ensure that you follow good payroll and tax practices. The right lawyer can also help, especially if he or she is well-versed in small business concerns. You can get food advice about how to proceed, and what shouldn’t be left out.

Another consideration is hiring a professional bookkeeper. At the very least, consider getting good bookkeeping software that can help you keep track of your income and expenses, especially if you have payroll concerns.

5. Keep Good Records

Finally, make sure to keep good records, and require your employees to keep good records likewise. You should keep receipts, and make notes of what was discussed at business meetings. Don’t forget to have your employees keep good records, too. Require them to submit travel receipts for reimbursement. Even your petty cash should be subject to good record keeping. Have a record book and issue receipts for petty cash expenses.

Good records can help you at tax time, and protect you in the event of an audit.

Franklin Manuel

Franklin Manuel

Franklin Manuel is a technical designer at Due with an eye for financial blogs. He aspires to help design Due to enable your early retirement.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.
Categories

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More