5 Useful Tips for Managing Your Own Business Accounts
When you first start your own business, you have to do everything - from manufacturing your product to offering your service, from marketing your business to selling your products or services, and from working with customers or clients to managing your business accounts. However, the area that many particularly struggle with is accounts. 

 Not only is this not as exciting as the other aspects of running your business, but it does not seem as urgent as other things to do, particularly if you have a long to-do list. Yet unless you manage your money well, you will not know whether you have more money coming in to the business or going out, which is a recipe for disaster. 

Five Simple Tips
Managing your business accounts can be an easy task if you use the following five tips to get organised. 

1. Create a business account
One of the biggest issues that entrepreneurs face comes from not splitting up their business accounts from their personal checking and saving accounts. This commingling of funds causes numerous problems, ranging from spending money on your personal expense when you need it to grow your business to dealing with taxation at the end of the year. 

Most banks can help you set up a separate business account, and may even give you certain benefits like a credit card and overdraft protection. 

2. Set aside a percentage of revenue for tax purposes
If you don’t set aside money as you earn it for tax purposes, this will cause you a lot of stress when it comes to tax time. You will not know how to come up with the money you may owe and if you don’t pay your taxes, you may face fines. All this hassle can be easily avoided by simply putting aside a certain percentage of your income when you receive payments from clients. 

3. Correct misconceptions about managing money
Unfortunately many entrepreneurs have an unrealistic view of how to manage their own business accounts. When they worked for someone else managing money was as simple as collecting regular pay cheques and spending it on expenses; however, when managing money in a business, steady cash flow is the most important thing in keeping a business running. If the gap between when money is received from clients and when it is due for business expenses is too large, there is a dip in the cash flow, which can cause all sorts of problems. 

4. Keep track of weekly expenses
It’s important to keep track of weekly expenses so as to be able to know what business expenses can be written off at the end of the year when it comes to filing taxes. Without this regular monitoring of expenses, it becomes easy to confuse the money you spent on business expenses and the money you spent on your personal expenses. Business expenses include paying for a lunch with a client, travel costs to a meeting, or going to a business education seminar. 

5. Consult with an accountant
Seeking expert advice from an accountant will be helpful in managing your own business accounts. You will learn new ways of organizing your documents and tracking your expenses, as well as pick up useful tips on how to best prepare your tax returns. 

It’s easy for an entrepreneur to get distracted with managing many aspects of his or her business that call for immediate attention, but unless an effort is made to manage business accounts, things can become quite chaotic. Using these five tips will provide a framework to organize and manage business accounts.

Author Bio;
Sally is a financial guru and has a masters in finance and has set up and run several finance businesses. Sally recommends Drummond Bookkeeping & Accountancy Services LLP for those looking for an expert to deal with their finances.

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