The Easiest Way to Make Money from Your Business (Even While You Sleep)

Posted on 08. Nov, 2013 by in Business Wealth

Business banking

Starting a new business is both incredibly daunting and exciting all at the same time. Finding customers, developing and refining your products and services and working out how to further spread the word are amongst some of the most pressing issues to concern yourself with.

When the money finally rolls in, you give a huge sigh of relief and then prepare yourself to rinse and repeat. But before you get carried away with the next customer or project, it is worth giving some thought to how you handle the much sort after funds you have finally received.

Business banking isn’t often at the top of most to do lists, but having an organised system for you business finances can make your business transactions a whole lot easier and significantly decrease your financial risk at the same time.

Many new businesses process a great deal of their transactions online these days, which makes receiving money very easy. The only trouble with this is that the funds received may not necessarily end up in the right place.

Paypal might make things simple and leaving funds in your account makes your own payments easy for you to process in return, but there is a big risk involved in leaving large sums sitting in your account. The possibility of someone hacking your Paypal account is very real, but even more importantly Paypal is not a bank which means you will miss out on your money making you money.

This is also true for an everyday business accounts offered by your bank. Having payments made to a working account keeps this easy to follow from an accounting perspective, but leaving all of your funds in the one account isn’t the best use of the asset.

No matter the size of your business the importance of business saving accounts should not be underestimated. It is important to realise that your unspent business capital can be safely used to make you money in the background, while your business continues to tick away and be foremost in your mind.

Putting aside a small amount of time to calculate the sum of working capital you require to run your business is a very worthwhile exercise. Not only does it help you better understand the amount of cash flow you require to operate, it also means you can confidently make decisions about moving money from within your business into a separate high interest savings account.

Your business accounts should be no difference to your personal accounts, so setting up separate accounts to manage your money is never a waste of time.

Everyone loves it when their money makes them money, is yours working for you?

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