Running a business is like navigating a ship through uncharted waters. There are bound to be challenges and opportunities at every turn. To help you steer your business towards success, Banterra Bank's experts have put together ten essential financial tips. These tips are designed to keep your business financially healthy and ready to seize new opportunities. Continue reading to learn more.

1. Separate Personal And Business Finances

Mixing personal and business finances can lead you to a tangled mess. Keep them separate to simplify accounting, track expenses accurately, and stay on top of your taxes. Open a dedicated business bank account and use it exclusively for business transactions.

Resources For Success:

2. Consider Getting A Business Loan

Often, business owners hesitate to take out loans due to the fear of financial repercussions. However, loans may be a helpful tool for your business’s growth and stability. They provide the necessary capital to purchase equipment, expand your team, or even out cash flow, ensuring you can pay employees and suppliers on time. With favorable terms and rates, the right loan can be a manageable and strategic investment in your business’s future.

Resources For Success

3. Protect Your Business With Insurance1

Business insurance is essential for safeguarding your company against claims and lawsuits. Without it, you could face significant financial burdens that might jeopardize your business. Insurance helps protect your assets and ensures you can cover the costs of unexpected events. Regularly review and update your insurance coverage to match your business’s evolving needs.

Resources For Success:

4. Invest In Accounting Software

Good accounting software is like having a financial co-pilot. It streamlines processes, reduces errors, and gives you real-time insights into your financial health. Software like QuickBooks or Xero can automate invoicing, track expenses and generate financial reports with ease. With Banterra’s Digital Banking, you can easily download account activity to Quicken® or QuickBooks® to simplify the process.

Resources For Success:

5. Build An Emergency Fund

An emergency fund is your business’s safety net. Aim to save three to six months’ worth of operating expenses to protect against unexpected costs or downturns. Set aside a percentage of your monthly profits into a separate savings account dedicated to emergencies.

Resources For Success:

6. Optimize Your Inventory Management

Efficient inventory management can free up cash and reduce storage costs. Use inventory management systems to track stock levels and forecast demand accurately. Implement a just-in-time inventory system to reduce excess stock and minimize storage costs.

Resources For Success:

7. Use Digital Banking Services To Your Advantage

Digital banking services, such as online banking and mobile apps, can save you time and provide convenient access to your accounts, allowing you to manage all of your business’s finances on the go. For instance, use mobile check deposit features to save trips to the bank and set up automatic bill payments to avoid late fees.

Resources For Success:

8. Review And Renegotiate Contracts

Regularly review your contracts with suppliers and service providers. Renegotiating terms can lead to cost savings and better service agreements. For example, if your business has grown, you might be able to negotiate bulk discounts or better payment terms with your suppliers.

Resources For Success:

9. Plan For Taxes Throughout The Year

Do not wait until tax season to think about taxes. Plan and set aside funds throughout the year to avoid last-minute stress and potential penalties. You can also set up a separate tax savings account and transfer a portion of your income into it each month based on your estimated tax liability. Consult your tax advisor to learn more2.

Resources For Success:

10. Seek Professional Financial Advice

Consulting with financial experts can provide you with tailored advice and strategies to grow your business. They can help you with everything from investment decisions to choosing the right business account. Banterra’s team can even assist you in making a long-term financial plan that aligns with your business goals and risk tolerance.

Resources For Success:

At Banterra Bank, we understand the unique challenges that businesses face. Our comprehensive business banking services, including business checking and savings accounts, digital banking and treasury management services, are designed to support your financial needs and help your business succeed. Contact us today to learn how we can be your financial partner in the new year.

Contact Us

1Banterra Insurance is not a deposit, not guaranteed by the bank, not FDIC insured, not insured by any federal government agency.

2Banterra Bank is not a licensed tax advisor, accountant, or attorney and we do not provide specific tax advice. We encourage you to consult with a tax professional for advice tailored to your individual circumstances. Tax laws are complex and subject to change. Any tax-related information we provide is general in nature and may not apply to everyone.