Whether your small business is your full-time job or you have a side hustle in addition to your primary job, the accounting side is never as much fun as coming up with ideas. Luckily, organizing your business finances doesn’t have to be stressful. With these financial tools for your small business or side hustle, you can improve cash flow, grow your business, and automate some accounting tasks to free up your time for other efforts.
Organize your small business finances
When it comes to running a business or selling your services as a freelancer, you can’t treat the income you earn as the same money earned in a paycheck. The big difference between being an employee and being your own boss is taxes. As a sole proprietor, you’re responsible for paying all the payroll taxes that your employer would typically withhold for you (while paying half your Social Security and Medicare taxes themselves). And, if you have part-time or full-time employees in your small business, you’ll need to withhold taxes for them and issue a W-2 at tax time.
To organize your business finances, keep track of your earnings and expenses. This information will be important at tax time. It’s also best to separate your personal and business finances as much as possible, even with a side hustle, by maintaining separate personal and business bank accounts. Investing the time and effort now in organizing your small business finances will make your life easier when it’s time to file your tax return. It also reduces the risk of a costly error, such as not paying enough taxes and falling behind with penalty fees added to your balance.
Grow your business with credit cards & loans
Once you’ve gotten organized and are ready to grow, credit cards, loans, and lines of credit can all be useful tools if used responsibly. For example, a cash back business credit card could help you earn money on everyday purchases that could then go into savings.
When it comes to obtaining business loans and lines of credit, establishing a relationship with your bank before you apply for funding can improve your application’s chances of success. Working with a local lender also gives you access to someone who understands your market and can provide advice based on your current needs and future goals. Think of your business banker as another member of your team who can suggest products to support your business plan and help you grow. Meet our local Commercial Relationship Managers!
Utilize project management software
While not strictly speaking a financial tool, project management software can help you organize day-to-day tasks as well as stay on track towards meeting long-term goals. This may grow your bottom line as fewer tasks drop through the cracks and you achieve some of your bigger goals. There are a variety of project management software platforms available, many with free versions for smaller enterprises. Try a few different ones to find the best fit for your business.
Business bank accounts
As we mentioned, separating your personal and business finances is one of the best steps you can take in organizing your money. Make the most out of your income by having a high-yield business savings account to grow your funds, and make sure you have a business checking account to handle all of your billing needs. Compare our different business bank accounts to find the business checking account and business savings account that are ideal for your business’ needs.
Set up online banking
Enjoy the convenience of managing your business bank accounts from wherever you are, whether that’s a home office or out in the field. The benefits of online and mobile banking with AMNB include:
- Accept payments online so you can get paid faster and avoid cash flow issues.
- View account balances and recent transactions.
- Transfer funds between accounts and institutions.
- Initiate stop payments.
- Pay your bills online.
- View current and past e-statements.
- Use our treasury management tools for payables and receivables, fraud protection, and liquidity management.
With Autobooks, our new e-commerce platform for small businesses, you can send digital invoices and payment links, accept customer payments, and view all incoming, coming due, and past due invoices. Send yourself a test invoice now to see how easy it is to send invoices and receive payments.
Use tax software or a CPA
If we haven’t already emphasized the importance of taxes, it’s not something you want to get wrong. Consult with a tax professional for specific advice about your business and ways you can reduce your tax bill. In general, we recommend using tax software or having a CPA do your taxes. This will give you peace of mind that everything is being done correctly so you don’t have to receive unpleasant notifications from the IRS about past-due tax amounts.
We have financial calculators for auto loans, credit cards & debt, insurance, loans, retirement, savings, taxes, and more. Use these calculators to help you budget, set savings goals, and understand your tax liability.
Meet with a commercial relationship manager today!
As wonderful as all these financial tools for businesses are, sometimes nothing beats a good old-fashioned conversation with a local expert. Schedule an appointment and begin a business banking relationship today!