As a small business owner, you know that financial management is key to the success of your business. But between logging and paying bills, administrative duties, client phone calls and employee meetings, even the most experienced business owner can let something slip through the cracks. Here are three tips to help you avoid a few common financial pitfalls.
Talk to an expert: Juggling every task by yourself is nearly impossible when you own a small business. There are certain resources that you should constantly have at your disposal. These include a CPA, an attorney, a banker and an IT tech. These resources are there to assist you when you don't have the time or skills to complete a task--such as keeping your taxes up to date.
Plan for cash flow management when cash is still flowing: You know the importance of keeping your cash flowing, but many times when the cash is flowing, small business owners don't think to plan ahead. Instead of being strapped for cash and having to choose a credit card with high rates and fees, consider a line of credit to help keep your cash flow steady. Telhio Credit Union offers lines of credit and business loans that will give your business the peace of mind that additional capital provides:
- Small Business Association (SBA) 7a or 504 loans: for the purchase of land and buildings as well as the expansion or conversion of existing facilities.
- Commercial and Real Estate Loans: for the purpose of purchasing or refinancing commercial or industrial real estate.
- Business Lines of Credit: for payroll, working capital or short-term payable obligations, as well as a revolving line of credit to finance your business.
Separate your personal finances from business finances: By keeping your personal and business finances separate, you're not only keeping your finances organized, but you're also giving credibility to your business. Separate business and personal accounts are crucial to helping better manage bills, taxes, and other payments, and help to reduce your personal liability in your business.
For more tips on avoiding common financial traps, visit the Small Business Administration website at www.sba.gov.
