Managing your small business finances is crucial. Small to medium-sized businesses need financing but they lack enough of it — to the tune of $5 trillion, according to the SME Finance Forum.
This lack of accessibility to affordable financing makes it far more important for small businesses to manage their finances efficiently in order to compete against larger competitors.
It is not uncommon for small business owners to dip into their personal savings — and even rely on high-interest personal credit cards — during the early stages of their business. However, as the business grows, it is vital to keep the business and personal bank account separate.
When it comes to managing your business finances, some of the same tried and tested rules that apply to the personal savings accounts will apply.
Here are eight useful tips to consider while handling finances for your small business.