As the owner of a small business, you have many financial obligations. These include – but are not limited to – operational costs, the expenses associated with the expansion of your business, and taking measures to protect both your customers and your employees. You may find yourself overwhelmed when it comes to budgeting, the types of accounts your business requires, loan options, and the methods available for receiving payments from your customers.
In this brief guide, we will touch on these topics so that it is easier for you to make sense of your business-related cents.
Budgeting and Accounts
First and foremost, you must separate your personal finances from your business finances. This helps in ensuring that you are compliant with the Internal Revenue Service, recordkeeping tasks, and determining your profitability margin.
When opting for an account, you should pay special attention to the rates and fees charged by banks. You should also focus on those whose terms best match the needs of your business. It is also important to choose accounts for your business that are protected by FDIC deposit insurance.
If you take the time to research these varying features, you will find that it is rather easy to discover accounts that you may use for budgeting your business with the lowest rates and the best terms.
The next area where you should place your focus as a small business owner are the loan options that you have at your disposal. There are business lines of credit, business term loans, and loans offered by the Small Business Administration (SBA).
Lines of credit will allow you to borrow a specific amount and repay small payments over several years.
Term loans are typically used to cover larger expenses and require larger monthly payments to be completely paid over a span of a few years or so.
Small Business Administration loans are best suited for start-ups and for general business expansions. For more information, consult your business bank.
There are many methods available for receiving payments from your customers. These include accepting cash, checks, debit cards, credit cards, online payment systems such as PayPal, and even allowing customers to pay using mobile apps.
The goal is to make it as convenient as possible for your customers without incurring a large number of fees.
If you would like to learn more about the various payment options available to you and your customers, you may make an inquiry at your bank and/or review information on the website of the Federal Trade Commission.
Let Us Help
We here at Somerville Bank know and understand the financial challenges that you face as a small business owner. If you need a little assistance in this area or would like to inquire about accounts and/or loans, we would be glad to help you.
You may call or come in at one of our locations and speak to one of our qualified financial experts. Simply find us at your Local Branch