Open a business bank account
Mixing personal and business expenses can be a recipe for disaster.
Opening a dedicated business bank account, like our Business+ Account, keeps your business finances separate from your personal ones. By doing this, you’re simplifying your accounting (saving you money) and making sure that you're not accidentally dipping into your business funds for personal purposes.
If you’ve got plans to take out a business loan or overdraft, most financial institutions ask for business bank account statements in your application. Well-managed business accounts give the lender confidence that you have control over your finances, increasing your chance of approval.
Choosing the best business bank account is an important step in expense management. The Business+ Account has no monthly fees and can be opened in just minutes with Great Southern Bank’s Business+ Account in the Business+ app or Business+ online.
You should also consider a business savings account to earn interest on money you put aside to cover business expenses.
Prioritise your business’s cashflow
To manage your expenses effectively, start tracking your cashflow diligently. Use accounting software (more on that soon) or spreadsheets to keep a close eye on your income and outgoings. This will give you a clear picture of where your money is coming from and where it's going.
Choose accounting software
Accounting software has come a long way over the years. It’s easier to use than ever and it can be your best friend when it comes to expense management. Consider using accounting software like MYOB or Xero to make keeping track of your finances simpler. These tools can help you organise your expenses, generate invoices and produce your financial reports.
Our Business+ app integrates nicely with MYOB and Xero so your business banking feeds directly into your accounting software. This can save you precious data entry time and your expense report will be more accurate.
Set realistic budgets
Create a realistic budget and stick to it. Your budget should cover everything from salaries to office supplies. This helps you avoid overspending and keeps your finances under control.
Small expenses have a sneaky way of escalating quickly. ‘Death by a thousand cuts’ comes to mind. Review your expenses regularly to find costs that can be trimmed.
Larger expenses might be unavoidable, but you may find ways to make them cheaper. Look for the best deals on utilities and insurance without compromising on cover.
Plan for tax time
Speaking of death and other unavoidable things, taxes are something you need to prepare for.
Open a Business+ Saver and put a little money away regularly so you don’t have the shock of one big expense come tax time.
It’s smart business to wrangle your expenses before they get out of hand. It can seem daunting, but as with most worthwhile things the hardest part is starting.
So, start here at our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
