Your Business’ Top Three Bank Accounts for Success
You want your business to succeed.
That said, you’ll want to ensure you leave no stone unturned when it comes mining all available resources. When it comes to financial burdens, you bank account(s) contribute a great deal to your overall success. In this way, there are three specific kinds of accounts that work efficiently to keep your business in the black.
Why a Business Checking Account is So Vital
First, you have your Business Checking account.
A Business Checking account is instrumental in managing all incoming and outgoing payments. You may think this is as simple as invoicing and paying invoices on the spot. But oftentimes in business, no one gets paid immediately.
Let’s say you are billing someone for a service you provided. You’ll want to offer them a bit of a grace period to make good on their payments, especially for larger bills. Then, you’ll use the Accounts Receivable feature of your business checking account to monitor these grace periods. Likewise, if someone is billing you for a service they provided, you’ll also get that grace period. You’ll then use the AP, or accounts payable feature, to keep track of when your bill is due in full. Falling behind on things like this is an easy to find yourself low on funds or in hot water with service providers.
Pulling Double Duty with Business Savings Account(s)
Next up, we have business savings accounts. Newton Federal recommends having not one, but two different savings accounts. One is used as a sort of “spot me” account, allowing you access to cash reserves in the event that your checking account experiences issues. The other you can use as a more of a preventative measure; start putting away funds for any future tax payments now. This will save you from being caught off guard or scrambling when those inevitable due dates creep up.