“A New Year’s resolution is a commitment that an individual makes to a project or the reforming of a habit, often a lifestyle change that is generally interpreted as advantageous. The name comes from the fact that these commitments normally go into effect on New Year’s Day.” www.wikipedia.org.
While many of us have personal resolutions there is also a large group of small business owners who make resolutions for their companies. How many of you have made the resolution: I will do better with managing my business finances. I commend you if you have. Accurate and timely financial information can be the key to informed choices for any size business.
A good place to start is to get a business checking account with a debit card if you do not already have one. Having a business credit card can also give your company a credit track record. The worst thing you can do is use a personal account to pay your business expenses. If you’re a LLC it can nullify the protection that it was set up to provide. But even if your company is not a LLC separating business from personal expenses will get messy.
Cash is another form of payment that should be avoided. In our technological society one would be hard pressed to find a vender that did not accept credit cards, debit cards, or even a company check. How many cash receipts get lost between the seats of the car or truck; and there are no statements to remind us of our purchases at the end of the month? If you can remember all the payments you made during a month, then your memory is better than mine! You are on your way to fulfilling your resolution!
