When you own a small business, there are a lot of responsibilities and stress that naturally fall onto your shoulders. You don’t have a large team of people you can rely on for different things, so it’s important to learn how to handle as many aspects of your business as you can. Then, once you grow larger, you can add professionals to your team who have experience handling different responsibilities and departments. Read on for key advice.
Open the Appropriate Type of Bank Account
When you open a small business, you need to give some thought to the type of bank account you’ll open. You want to make sure your bank account meets your basic needs as an entrepreneur and also offers extra services to make your life easier.
For starters, you need to take the time to open a business bank account instead of using your personal bank account. A business bank account can help keep your business legally compliant, and it simplifies maintaining your company’s income and expenses separate from your personal affairs.
Look for a small business bank account that comes with no fees. It’s in your favor to find a bank that offers business accounts with high-yield interest rates and doesn’t charge you for instant deposits.
Make Sure You’re Following Regulations
Every state has legal requirements governing businesses. To keep yourself safe from legal repercussions, it’s essential to become familiar with state and federal business laws and remain in compliance with them. Regulations don’t just vary by state, but by business type as well. So if you have an LLC, for instance, Point Park University explains you will have different legal requirements than a corporation or other type of business.
Join Your Local Chamber of Commerce
There are a variety of reasons you should consider joining your local Chamber of Commerce. It can help you gain a voice in your local government, make your business more credible, improve your networking opportunities and increase your brand visibility in your own community.
Keep Your Records Organized
If you don’t keep your business records organized from the very beginning, it will become a lot harder to organize them down the road. Per attorney Mike Hook, a few key points for organizing your records are to standardize naming conventions and save all invoices, payment receipts, accounts payable ledgers, identify all the avenues in which your business is generating records, and identify what you are really required to keep.
Things like payroll records, invoices, and all other financial records must be kept for seven years. Other documents, such as auditors’ reports, general ledgers, end-of-year financial statements, and cash books should be kept indefinitely. Just store them somewhere out of the way or stored electronically so they don’t add to your office clutter.
Invest in Software and Security Tools
Investing in business-related software is a responsible and worthwhile step for any entrepreneur. As Consultants500 notes, the right types of software can automate repetitive tasks so you have more time for other things, help you manage your supply chain, sales and logistics, and ensure the security of your business information.
Using payroll software for running your payroll will make it much easier for you to receive and process payments quickly. When choosing software, look for features like automated taxes and forms, same-day direct deposit payments, and time tracking capability.
These simple approaches require a little bit of time and investment up-front, but they offer long-term benefits. If you want your business to grow, opening the right type of bank account, following state and federal regulations, joining your Chamber of Commerce, keeping your records organized, and investing in software is essential.
Courtney started Gig Spark to be a resource and the first step for people who are looking to join the gig economy, either to supplement their income or as a way to fulfill their dreams of becoming an entrepreneur.