Why separate your business and personal accounts
Lack of cash flow is a common reason for businesses to fail. Equip yourself with the right information to help your business succeed. You need to do what you can to ensure you have sufficient available funds for stock holdings and daily expenses pending receipt of cash from the issue of client invoices.
Completing Cash Flow Budget forecasts can assist to determine your peak cash funding requirements, which will help you manage your cash flow.
The first step is to manage your cash-flow situation in the short-term is to consider if you have enough cash to keep your business going. You can do this by determining your peak cash funding requirements and consider applying for a lending facility such as an Overdraft or Business Line of Credit. Another option is to consider a business credit card to pay for day-to-day or medium term expenses. A credit card may also be a good option to have on hand for emergencies or during quieter periods.
To help prevent cash shortfalls review your payment procedures. For incoming payments you could consider:
For outgoing payments you could consider:
Talk with your professional adviser about giving your business a financial health check. At Heritage we have a full range of business products and services to assist your business with both short and long term finance, coupled with transactional, payroll and creditor payment solutions.