Five Financial Accounts Every Startup Needs

May 8, 2018 5:40 pm

So you’ve decided to go out on your own and start a business. Congratulations, you are braver than most people. However, the bad news is that a lot of companies fail in the first few years. Most of the initial difficulties startups face in the beginning can be avoided by careful financial planning, If you would like to make sure that you can grow your company fast and avoid disasters, read more about the business accounts you will need.

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  1. Business Current Account

It is crucial that you keep your personal  and business accounts separate from Day One. This is why you have to get a business current account as soon as you launch your business. You don’t want to take money from your business for your personal use and vice versa, or you will not see clearly about your startup finances. A current account will help you manage your income and expenditures better and give you a real time snapshot of your financial standing.

  1. Line of Credit

You will want to have money available when you need it, or you will be left behind. As soon as you identify a great investment or development opportunity that can help you grow your business, you need to act on it. That is why securing a line of credit is essential for all new ventures. Check out businesslineof.credit  to find out how much money you can secure fast when you need it and how to apply for this financial account for your business.

  1. Leasing

In case you are starting off in the manufacturing business, you might need to invest in machinery, premises, and tools. Unless you won the lottery or inherited a large sum, you will not be able to afford to pay for these initial costs out of your pocket. Startups need to get smart with their money. Spread the cost and don’t stretch further than you are comfortable with. Instead of taking out secured loans, you can lease equipment and business vehicles.

  1. Tax Accounts

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It is also important that you have your tax accounts set up and put money aside each month, or you will find yourself in difficulty trying to meet your commitments at the end of the financial year. Budgeting for your tax and other liabilities each month will help you calculate your operational expenses better and keep on top of your finances as well.

  1. Business Savings Account

No matter how well you plan your finances, you will have to face with unexpected expenses in your startup business. If you create a business saving account in the beginning, you can put some money aside for these costs. Whether you have to get your equipment repaired or pay for a new training that is compulsory in your industry, you can cover the costs without getting into debt.

When starting a business online or offline, it is important to create a solid financial plan and foundation. Plan for emergencies and calculate your costs and potential income, while keeping your business accounts separate from your personal finances.

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