Confused about how to manage your business bank account?
Feel like you’re making it up as you go?
You’re not alone!
Nobody tells us how to manage finances in business. So we mostly just have to figure it out for ourselves.
Over the years, I’ve spoken with hundreds of business owners who were stressed, confused & embarrassed because they had no idea if they were doing it right.
Often, their business and personal money was all mixed up – or they constantly had to top up their business account with personal money.
And if any of that’s been going on for you, today’s episode will definitely help!
We’ll talk about how to manage finances in business by implementing 3 simple rules for organizing your business bank account.
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Applying these rules will help you gain so much peace of mind, because like most of us, you probably assume the worst when you’re not sure what’s happening. And that’s really stressful!
By implementing these 3 simple rules for organizing your business bank accounts, you’ll be able to relax, knowing everything is working and on track.
In the video version of this episode, I share my screen and show you the Magnetic Money™️ Bucket System – so you might want to check that out.
Ok, let’s get into these 3 basic rules for managing finances in business:
NUMBER 1: Separate Business And Personal
The first thing to do as a business owner is to separate your business and personal money.
And that means having separate business and personal bank accounts and being really clear on which is which.
Be sure your business accounts are in your business’ name and that they match the entity under which you operate your business (eg if you’re operating as a company, the business bank account should be owned by the company, not by you)
Your business is a separate entity to you – both legally & energetically, so this separation is important.
Plus, if the money’s all mixed up, you’ll have no idea what’s going on!
You’ll struggle to figure out if your business is even profitable. And like most of us, when you lack clarity, your confidence will drop and you’ll assume the worst.
NUMBER 2: Every Dollar Needs a Job To Do (and a place to do it)
Every dollar needs a job to do and a workplace where it fulfils that role.
This means you need to be clear on the PURPOSE of each bank account.
(Check out the video for this episode where I walk you through the Magnetic Money™️ bucket system, which will help everything make a lot more sense)
Let’s press pause so you can think about this for a moment…
Do you know exactly what the purpose of the money in each of your bank accounts is?
Are you clear on that? Have you named your accounts accordingly? Is it really obvious?
And if you still need to sort this out, let me know in the comments what your next action step is!
NUMBER 3: PUT TAX MONEY ASIDE
When you’re organizing your business bank accounts, you need to separate tax money.
I highly recommend having a separate business account that you top up every week or month to cover your tax bill.
Firstly, it’s good money management because when that tax bill comes, you’ll have the money ready to go!
Not only is it a wonderful feeling, you’re also energetically sending out a clear message that you expect to make profit. Because that’s what a tax bill is! It’s confirmation by the government that your business made a profit.
CONGRATULATIONS!!
So start looking at tax money as confirmation of your business’ success and profitability.
And isn’t that a total game changer to your mindset around tax?
Remember also that even though you’re putting that tax money aside, it’s still your money! Until you hand it over to pay your tax, it’s still available to you. You haven’t given it away or paid tax in advance. You’re simply preparing to cover your tax bill. This avoids any nasty surprises AND shows that you EXPECT to pay tax because you EXPECT to make profit.
Once you’ve implemented the above 3 rules, your business will be able to pay YOU.
And the money can then flow through from your ‘business bucket’ into your personal buckets, which include your BILLS bucket, your FUN MONEY bucket and your WEALTH CREATION bucket.
The Limiting Belief Busting Toolkit™️ (Money Block Buster System)
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