When you’re a business owner, you need to think differently about how to use your money and resources. Building and maintaining a business savings account is one way to protect your company and help yourself make better decisions.
A business savings account is an excellent place to store funds you don’t need to access on a daily basis. When you have a robust business savings account, you’ll be able to manage unplanned expenses or financial emergencies better.
You likely have at least one business checking account, but what about a savings account? Let’s look at some benefits of opening a business savings account.
Every business has seasons when sales are slow and you’re short on cash flow. A business savings account is a liquid asset, so you can tap it to pay any expenses if you need to. It’s a good way to help you plan and prepare for the unexpected.
Organizations that withstand the test of time understand there will be periods when they will be tested. Even if your business is thriving today, a sudden change in the market could cause you to lose customers and revenue quickly.
Consumer tastes change, and new companies are constantly entering the marketplace. A robust savings account gives companies time to understand market changes and respond in a way that will help them in the long run.
New technology is changing the way business is conducted, and companies need a way to pursue new solutions. Exploring new solutions allows your business to grow and expand, while companies that can’t afford to do so will be left behind. When you have savings to fall back on, you’re in a position to focus on growth and take advantage of new opportunities as they present themselves.
Good business leaders think about how they need to pivot and change to stay competitive in the market. When you know where to expend your resources, you ensure the business will continue to function optimally. A healthy savings account makes investing in the resources your company needs possible.
Before you open a business savings account, find out what interest rate that account pays. Some banks offer high-interest savings accounts that allow you to earn a little extra money on your savings.
Companies continue to grow in the midst of challenging economies, and many even thrive during hard times because they have financial resources set aside. The purchase or acquisition of a company going through money issues can provide an excellent platform for growth.
Companies with a strong cash position can acquire a poorly performing competitor. Furthermore, robust savings allow companies to obtain the best talent by matching or exceeding what other companies are offering for that position. When companies put money toward recruiting the best talent, they send the message that people matter.
Companies with robust savings can better acquire product knowledge and intellectual property. When a business focuses on gathering the right products or the right intellectual knowledge, that can push the company to stay a leader in its field.
Many businesses miss out on opportunities to give back because they need to use all of their resources to stay afloat. Good companies work diligently to develop their brand generosity. By saving, companies give themselves a wonderful gift in the form of a significant impact on the communities where they operate.
In his book Start Something That Matters, Blake Mycoskie, the founder and owner of TOMS, advises readers that the goal isn’t how much money you make, but how much you help people. Companies that develop the habit of saving money will find many beneficial reasons to give back a portion of their profits.
Once you open a business savings account and begin to set aside money, the next step is to find the right accounting software to manage those savings. The right accounting software lets you manage all of your money on one easy-to-access platform.
When looking for the best accounting software, there are a number of factors to consider. These include how many people need access, what features and tools the software offers, how easy it is to use and how much it costs.
Here are four accounting software options to think about:
Ken Gosnell contributed to the writing and reporting of this article.