Key Takeaways

• Running a business can be a dream come true, but managing business finances efficiently helps keep your operation running smoothly.
• Financial management tools help your small business save time and increase accuracy.
• Keeping personal and business expenses separate simplifies tax time.

Owning a small business can mean independence, following a passion, or building a solid future. While financial management might not be the first thing on the minds of many small business owners, following key business finance tips can make the difference between thriving and just surviving. Follow these tips to keep your business finances on track:

1. Open a Business Checking Account

Keep your business and personal funds separate by opening a business checking account. Separating money makes it easier to track income and expenses, but most importantly, separate financial records are essential for tracking tax obligations. Run all business transactions through this account, including paying your business credit card statements. Your banker can help you choose the right account for you, like the business checking accounts at Lake City Bank.

2. Maintain Access to Your Accounts

Digital access allows you to know exactly where you stand financially 24/7. A solution like Lake City Bank Digital for Business works from anywhere on any device, making financial management easy and convenient.  Digital access includes banking functions such as:

• Checking balances
• Sending wires
• Transferring money

Lake City Bank Digital also provides access to small business tools* for:

• Moving money
• Preventing fraud
• Reporting

3. Track Your Income

Keeping track of cash flow helps you understand your financial performance. Use accounting software to:

• Monitor finances
• Perform complex calculations
• Run reports

Tracking income trends over time helps with scheduling and budgeting.

4. Track Your Expenses

Tracking expenses helps determine financial performance, but you need expense information to calculate your tax obligations as well. Accounting software can make this easier and, over time, help you determine whether full-time employees are necessary for certain functions or if seasonal hires make more sense for your business.

5. Make Sure You Get Paid

You’re in business to make money, right? For that, you’ll need an invoicing system for collections. Autobooks, available within Lake City Bank Digital, simplifies collections with features to:

• Accept payments (standard processing fees apply)
• Create and send custom invoices

6. Organize Digital Records

As your business grows, so do your records. Rather than relying on piles of paper to track financial performance, digitize financial documents to streamline decision-making and simplify tax preparation. 

Congratulations on building your own small business! While financial management may not be the most exciting part of entrepreneurship, it’s essential for your success. Using the right tools can make tracking growth and day-to-day operations much easier.

At Lake City Bank, we’re ready to help. Drop in to one of our branches or call our One Call Center at (888) 522-2265.