Skip to main content
Online Banking will be temporarily unavailable for maintenance on Tuesday, Dec. 12th from 8am - 10am. For assistance, please contact us at 229-242-7600.

9 Tips for Organizing Your Business Finances

Managing your business finances is no easy task, and you’re not alone. Almost 61% of business owners have reported that handling consistent and steady cash flow can be challenging. No matter how good your product or service is, if you are lost when it comes to organizing your business’s finances, building a successful business may remain an unrealistic dream. 

To help you keep your business finances running smoothly while also planning for your future, we’ve gathered these nine tips!

Prioritize Business Financial Planning

A comprehensive business finance plan includes budgeting, accounting, future prediction, tax planning, and risk management. 

It’s important to analyze your business’s accounting reports and financial statements from time-to-time to gain proper insight into your business’s performance. This will allow you to set the right financial goals, whether that’s to invest more money in your business (for expansion, buying new inventory, or hiring staff) or to save for retirement.

Avoid common tax mistakes with organized records and bookkeeping. The best way to avoid tax stress is to be prepared. In addition to understanding tax deductions, you can also learn how to lower your tax burden as a business owner.

Create a Budget & Stick To It

Putting together a budget can not only completely change how you manage your business finances, but it can also help you achieve revenue goals sooner than you’d expect. A budget can assist in forecasting the revenues your business will generate and even identify unnecessary expenses. 

Ideally, you should create an operating budget that shows you the projected revenues for the financial year. Even though this is only a high-level summary, it includes all the essential details about your business’s costs and operating expenses. 

Think of the operating budget as a tool that tells you whether your expenses are on-point per your plan. Next, focus on a cash flow budget to keep track of money going out and coming in. Doing so will ensure you know your business's liquidity position.

Get a Corporate Card for Your Business

Corporate credit cards aim to solve the hassles of digital spending for businesses. They increase the company’s purchase power while also improving the cash conversion cycle. 

With corporate credit cards, you also get a higher credit limit than with personal ones  — plus you’ll  be able to take care of all your business expenses without affecting your personal liability. 

Apart from helping manage business finances, corporate credit cards make compliance and reporting so much easier for growing businesses  who need to focus more on core business goals. 

Obtain a Line of Credit

Obtaining small-term financing, or a line of credit, is another tool to help you manage your finances and ultimately grow your business. 

When you own a business, a line of credit can help you tackle several short-term funding requirements, such as maintaining inventory, salary payments, or addressing new orders. Having access to a line of credit can also help you control your cash flow throughout the year

Optimize Your Payroll Process

While ensuring steady cash flow is important, you also need to think about the best ways to streamline your payroll process. 

Choosing the right payroll software is an easy way to ensure salaries are directly deposited into your employee’s bank accounts. 

Simply put, a direct deposit helps to manage cash flows better. You not only eliminate the chances of different employees depositing their checks at different times, but you can also prevent yourself from accessing funds in your account that are allocated for outstanding checks.

Don't Be Afraid of Loans

Many business owners fear they will enter a debt trap once they start borrowing money, but this couldn’t be further from the truth. 

Business loans can help you tackle unforeseen expenses. No matter how skillfully you manage your business finances, any disruptions and volatility in the market can make it incredibly difficult for your business to meet any working capital requirements. 

You can obtain loans for different needs of your business, such as buying inventory, paying salaries, or even equipment loans. 

Keep Your Business & Personal Finances Separate

Mixing business expenses with personal finances is the perfect recipe for disorganized records. 

Not only does it make it incredibly challenging to keep track of money received and money spent, but it can also result in overspending as you may end up using your personal funds for business expenses and vice versa. Moreover, a clear separation of personal and business finances is necessary so you can claim tax deductions for various business-related expenses. 

Improve Inventory Analysis

Inventory management is the fundamental building block to your company’s longevity. When your inventory is organized, your entire supply chain will be on the right track. Not having your inventory in place can lead to issues like delayed shipments, out of stocks, overstocks, financial inefficiencies, and more. 

For example, if a customer doesn’t know an item they wanted in store can also be purchased online, a sale is lost —one that could’ve helped a business move inventory that might have soon been out of season. 

Opt for a Financial Service

You can leverage various financial services and tools to better manage your small business finances and cash flow. These tools help business owners and finance teams automate manual, repetitive financial tasks, and provide insights into money flow.

These 9 tips are some of the easy ways to organize your business finances and keep your business operations running smoothly. 

Remember that as a business owner, you already have enough on your plate. Delayed access to funds or long-drawn approval processes can completely stall growth opportunities coming your way.

Want to learn more? Get in touch to discuss your business banking needs. We are always here to listen and help.

Want to learn more?

Get in touch to discuss your business banking needs. We are always here to listen and help.

Learn More