As a small business owner, you have lots to worry about. A lot of your time is probably spent thinking about your finances, so we’ve put together a list of a few ways to make managing that easier:
Get a Credit Card with 2% Cash Back
Do some research before signing up for any business credit cards, and make sure you find the ones with the right benefits for your business. You can get cash back rewards, mileage on airlines, or points that you can redeem for various rewards. One great small business credit card is the Capital One Spark Business card. You can choose the cash back rewards option, with unlimited 2% cash back, or if you travel a lot for business, you can choose the miles rewards option and get unlimited 2x miles. The cash back rewards card has been a savior during rougher months for the business.
Pay Invoices Net 45
Whenever you make a deal and sign an invoice, try to structure them so that you have 45 days to pay. Pay them on the 40th day so that you don’t face any penalties, but keeping the cash in your account for longer is better because you can continue to earn interest and plan your budget around taking that money out.
Every penny counts at a small business, so it’s important to look for the best bank accounts for earning interest on your money. There are many savings accounts with decent interest rates, but it can be harder to find checking accounts that will help your money work for you while having easy access to cash. Look into starting accounts at Bank5 Connect, FNBO DIrect, EverBank, and CapitalOne 360, where you can earn about .60-.90% interest.
Prepare for tax season
Everyone knows that tax season is going to come, but many forget to plan for it and end up slammed, owing huge amounts of money that they weren’t prepared for. To avoid having to scramble to pay what you owe at the end of the year, start a separate bank account, calculate how many taxes you’ll owe at the end of the year, and calculate how much you’d have to save each week to pay that and put it aside. While it might be tough to take that money out of your income every week, it’s going to be much easier than having to come up with it all at once. Bonus: keep it in a bank account with high interest rates like the ones listed above to earn even more.