MONEY. Keep it right, keep it tight.
You want to stay as organized as possible with your biz finances. Your accountant and CPA will thank you… honestly you will thank you when you realize how much work it is for people to get things organized last minute lol. Annnd you will probably make a mistake here and there… I’ve used Apple Pay and chose the wrong debit card a few times but it’s ok, as long as you catch it and categorize it properly you’re still golden.
Open a bank account! I banked with Chase for my personal finances so I just went in and had them open my biz bank accounts as well. You will most likely be a Sole Proprietor and will need a EIN number (Click here to apply) ..don’t worry it’s free. Please please contact a accountant if you have any questions of how to categorize your business (S-Corp, Sole Prop, etc). Anywho, your banker will need the EIN info to open a business bank account for you. You will most likely need a form of identification as well. Check your banks website for the paperwork you’ll need to open the account.
I have multiple accounts. It sounds intimidating but it really isn’t.
I have four right now:
- Business Checking -all sales are deposited here and most transactions go through this account.
- Sales Tax -if you’re selling retail products having a separate account for this will help keep money aside to pay your sales tax every quarter. SN: If you’re selling retail you should be collecting sales tax. I go into my reports on Vagaro weekly and it will tell me how much money we collected for sales tax and I transfer that money from the business checking and transfer it to this account.
- Open Retail -I take a percentage of retail sales (minus taxes) and put it into this account to use towards purchasing retail products. This makes sure I’m budgeting properly and not going overboard with the retail purchasing. I currently put 20% of retail sales into this account weekly. Vagaro has a report to make finding this number easy as well.
- Business Savings -Here I put in any extra profit to save for bigger projects, trainings, repairs, etc. A savings account normally collects interest so this is an extra way to make your money work for you too. I don’t touch this account often.
I have a business credit card as well and use it mainly for the benefits. I make sure to pay the balance off as soon as possible to avoid paying any interest. Try to find a biz credit card with a low interest rate, no yearly fee and great benefits (travel, points, amazon points, etc.)
I use Vagaro for my merchant and booking account. It literally does everything for me. It not only auto generates these reports for me but it send reminder texts/emails, has online booking, online forms, you can upload files and photos, etc.
Sign up for Vagaro here!
My next post will be all about how I categorize and organize my finances for tax purposes. Stay tuned! Find me on Instagram & shoot me a DM with any questions.