Nevada State Bank: Start your business on the right financial footing
Nevada State Bank
Establishing and growing a small business, especially in today’s difficult economic climate, takes a huge commitment of time and effort.
Streamlining your banking and finances could help you find more time in your busy life – time that can be spent building your business and your future. These tips may help you get started the right way and save you time and money as your business grows.
Set up your business banking
Keeping your business money separate from your personal money is essential to help you track business expenses, revenue, cash flow, and ultimately, profit.
A business checking account is an easy way to separate the business “you” from the individual “you.” Ask your bank about the business accounts they offer to make sure you’re in the account type that best fits your needs and helps you avoid unnecessary fees.
It’s also important to set up a savings account for your business, which can act as an emergency fund for unexpected expenses and assist with any cash flow issues.
Credit and debit cards for your company can also help you separate business payments from personal payments. Company cards can be used to make any purchases associated with the business – from a new computer to a box of paper clips. Statements will show all your expenses in one place, making business management, budgeting, and tax preparation a lot easier.
A business line of credit can give you the flexibility you need to purchase new equipment, expand from a home office to a leased space, or just keep your business afloat when cash is tight.
With a line of credit, you pay interest only on what you borrow, which can be an added benefit for small businesses running on tight budgets.
Establish ways to accept payments
Talk to your bank about setting up a merchant account so you can accept credit and debit card payments from customers.
Many options are available, including point-of-sale equipment in a retail setting, small devices that can be connected to your phone or tablet, and software that lets you accept payments online.
Streamline your financial processes
Online and mobile banking can be convenient for the busy entrepreneur who may not keep regular “business hours.” Banking 24/7 from any computer or mobile device lets you decide when and where you conduct your banking business.
Your business online banking can even be integrated with accounting programs like QuickBooks to help you avoid duplicate data entry and increase accuracy.
Paying bills online can reduce the cost of buying paper checks and postage stamps. You can even write paychecks to your employees through online banking. If you’d like to save time with payroll processing and tax payments, ask your bank about payroll services.
Making trips to the bank to deposit checks can take time out of your busy day. You can deposit checks remotely by using a device at your home or office that scans your checks and sends the data directly to your bank.
Besides saving time, remote depositing also helps social distancing and can benefit your cash flow — rather than keeping checks until it’s convenient to visit the bank, you’ll get credit for them right away.
Set yourself up for the future
Although many start-ups won’t qualify for commercial or SBA loans, it’s important to take steps now so you’ll be prepared when the time comes to apply for financing.
Make sure you keep current on all loans, credit card bills, and accounts with vendors so your business credit will look its best. Establishing good financial habits and keeping accurate records from the beginning will help you when you apply for financing.
Lenders will want to see a comprehensive and detailed business plan including details of how the loan will be used, how you plan to repay the loan, and how you’ve prepared for unexpected expenses or emergencies.
The SBA and SCORE websites contain good advice about how to develop business plans. Get the information you need to create a business plan that will present your company in the best light.
Although your business may be small now, it’s wise to think big and prepare for the future by setting yourself up the right way. Establishing a good financial foundation for your business can play a key part in its success and growth.
Rick Thomas serves as Executive Vice President and Northern Nevada Executive at Nevada State Bank, leading a team that specializes in meeting the needs of businesses in the unique Northern Nevada market. Norma Noonan serves as Vice President | Treasury Management Relationship Manager at Nevada State Bank for Northern Nevada, helping businesses find the tools and services they need to manage finances for their business.
From a national standpoint, research shows the embrace of digital commerce is a whole decade ahead of schedule thanks to the pandemic. We spoke with the Retail Association of Nevada, Downtown Reno Partnership and the Reno+Sparks Chamber of Commerce to give local context to the growth of online retail.