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How to survive the job hunt
How are you going to spend your time between graduation and employment?
Whether your business is more of a side hustle for some extra cash or a successful enterprise with employees and infrastructure, one thing remains the same: You should keep your business and personal finances separate.
Every business owner should also have a few experts in their back pocket. From lawyers to accountants, to a financial expert like Yianni Harbis, Manager, Branch and Commercial Banking with Sydney Credit Union. These folks will help ensure you’re not just set up properly, but that you’re set up for success.
Organization is key.
“Having one separate business account isn’t always enough,” says Yianni. “Having a separate account allows for separate accounting, which can help with organization. The key is to find what works best for you and your situation.”
It might seem like an extra step in the beginning, but having separate accounts allows you to be more organized and in control of your money. Depending on your business, you might need to have access to money for payroll or for when tax-time rolls around. By keeping each of these buckets separate, not only will it give you a better sense of what you have available, it will make keeping track of everything a whole lot easier.
“Cash flow is one of the top reasons why businesses fail,” says Yianni. “That’s why having a handle on what you have available is so important.”
Better interest.
Often, owning a small business can mean having to have a lot of money in an account, but not being able to access it (looking at you, tax account!). If this is the case, keeping this money in a separate account could help it work for you until it needs to be disbursed to other sources.
For the future.
“When you start a new business there’s a lot of take on,” says Yianni. “You’re trying to get sales, you’re trying to put your name out there, so sometimes the banking and the accounting side gets missed because there’s not enough time in the day. But taking the time to set things up properly in the beginning will save you in the long run.”
When year-end happens or the tax-bill is due, trying to work backwards can be incredibly time consuming—and when you’re already short on that precious resource, that can have some negative consequences. Starting your business with a strong financial foundation means you can spend less time worrying about that side of things and more time worrying about the more fun side of things—growing, expanding, and building your business for tomorrow.
For more information on setting up your finances as a business owner, talk to your local credit union.