If you’re like most small business owners, you probably wear a lot of different hats. You are the CEO, the marketing department, the sales team, and the accountant. It can be tough to keep track of everything when your business is just starting out. One of the most important things to get organized early on is your finances. This is especially true if you’ve just applied for the same day loan. And when it comes to getting organized as early as possible, separating your personal and business finances is necessary. But how do you properly separate your personal and business finances? Keep reading, as we’ve highlighted some clever tricks to help you do that.
Open a Small Business Bank Account
This is the most obvious way to separate your personal and business finances. With a dedicated business bank account, it’s much easier to track expenses and income. Plus, it will give you a better idea of where your money is going each month. And if you ever need to apply for a business loan, having a separate bank account is a must. Another benefit of having a dedicated business bank account is that it can help you build business credit. This is important because it will give you more options for financing your business in the future.
Get a DUNS Number
When starting out, using your personal credit card for business expenses can be tempting. After all, you probably have a good credit score and are already familiar with how credit cards work. But using your personal credit card for business expenses is a huge mistake. Not only will it make it more difficult to track your expenses, but it can also damage your personal credit score. This is why you should get a DUNS number. This is a unique nine-digit identifier that’s assigned to businesses. It’s used by creditors to help them evaluate your business’s creditworthiness. And it’s one of the best ways to build business credit.
Apply for Credit in Your Company’s Name
Another way to build business credit is to apply for credit in your company’s name. This can be done by applying for a business credit card or a small business loan. When you do this, ensure that the account is listed in your company’s name and not your personal name. This will help you build a strong business credit history that you can use in the future. Once set up, keep good records of all your business expenses.
Establish Utility Accounts in Your Company’s Name
Aside from credit, there are other accounts that you’ll need to set up in your company’s name. This includes utility accounts like electricity, gas, and water. Establishing these accounts in your company’s name is an excellent way to show creditors that you’re serious about building a strong business credit history. It’s also a perfect way to separate your personal and business finances.
Hopefully, these tips will help you better handle your finances. Remember, separating your personal and business finances is a must if you want to be successful in the long run. So, set up a dedicated bank account and establish good credit in your company’s name. Doing so will give you the peace of mind that you need to focus on growing your business.