The way you manage money for your start-up can be the difference between a successful business and one that fails before you really get off the ground. Following are eight money management tips that you should keep in mind every day to help ensure a financially healthy company.

1. Keep Business and Personal Accounts Separate

Mixing your personal and business finances is a mistake commonly made, especially by solopreneurs. Keeping them separate will allow you to avoid complications in both your personal life and your business books. Have a set salary for yourself, but otherwise keep earnings in your business accounts. This will give you an accurate idea or your company’s cash flow and ensure that you have the records you need when it’s time to file taxes.

2. Pay Attention to Due Dates

Always pay your bills on time. Know your due dates and make sure you make each deadline. If you can, pay your bills as soon as you get them to prevent this from becoming a problem. Late payments mean late fees, and they may hurt your business credit.

3. Improve Cash Flow Management

Cash flow management is key to business survival. Without it, you may struggle to pay your bills and find your business in a very difficult position. Always look for ways to improve cash flow and how you manage it. Take advantage of technology that can help you track and anticipate both expenses and income. Encourage customers to pay digitally (as opposed to by mail) to speed up the payment process. Automate late payment follow-ups, and charge late fees to customers who aren't paying on time.

4. Always Negotiate

Negotiate with vendors before signing contracts. You may be able to get a better deal if you make the effort, and the more you do this, the more the savings can add up.

"Sometimes you have to dig a little for a good bargain," says Alyssa Gregory at LiveAbout.1 When making purchases from vendors or contracting with suppliers, try negotiating for a better deal. Don’t forget to examine purchase terms like late payment penalties and grace periods when making a decision. Sometimes being given an extra 30 days to pay can save you more than a 5% discount off the top."

5. Keep an Eye on the Books

Don't forget to check in on your books on a regular basis to make sure everything is on track. It helps to know the basics of bookkeeping, so take some time to learn which numbers are most important and which may indicate a red flag.

"This is an obvious practice, but it’s a very important one. Do your best to set aside time each day or month to review and monitor your books, even if you’re working with a bookkeeper," says Business News Daily contributing writer Max Freedman.2 "This will allow you to become more familiar with the finances of your business and provide you with a window into potential financial crime."

6. Be Frugal

Always be on the lookout for ways to reduce expenses. Try to find less expensive versions of goods and services that you purchase or subscribe to. Look at free software alternatives and discounted office supplies. Think of every penny saved as money in your pocket.

7. Utilize Services Offered By Your Bank

Are you taking advantage of all the money management tools your bank has to offer? For example, Nevada State Bank has numerous small business banking features, including merchant services, payment services, information reporting, and liquidity management, as well as remote check deposits, direct deposit, and Positive Pay. Develop a relationship with your banker so that as your company grows, they can recommend additional services that might save you time and money.

8. Have a Cash Reserve

Keep a cash reserve that you can turn to when things get tough. Set up a business savings account3, and don't forget to add to it regularly. If you leave your cash reserve in your business checking account, you'll put yourself at risk of spending it.

Good money management doesn't have to be difficult. Just be sure you are following these best practices to stay on the path toward a healthy financial future.


  3. Please refer to the Deposit Account AgreementAccount DisclosureDeposit Rate Sheet, and Personal Accounts Schedule of Fees for complete details and disclosures.


The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank. Nevada State Bank is a division of Zions Bancorporation, N.A. Member FDIC