Connect Bank Accounts and Credit Cards
Having a solid foundation to build your business on is important, but maintaining and understanding the finances of your business is critical. For comparison, your business is the body and finances are the bloodstreams. If you have an expense that is out of control, it can slowly eat away at your businesses profitability. That’s why consolidating all of your accounts into an easy to read dashboard or monitoring system is crucial.
Many businesses, if not all, have both checking accounts and credit cards. Credit cards allows your business to use leverage in the short term to allocate cash elsewhere. A business checking account maintains the individualism of your business while keeping personal transactions separate.
First, connecting credit cards and business accounts to your accounting platform will greatly increase the optimization of your company. Generating monthly or weekly transaction reports can allow you to see where your company is spending the most money. Knowing where your money is going is essential because if there is a money bleed, you have to plug the hole quickly.
Also, optimization can manifest in the form of automating payments. Implementing payment automation not only ensures bills are paid on time, but it frees up mental capacity to utilize in other areas of your business. Constant monthly recurring payments can include leases, utilities, and rental payments.
Secondly, connecting all of your business payment methods and consolidating them to your accounting platform will bring a level of organization to your businesses financials. In the not so distant past, this was all documented by hand, which lead to human error and increased discrepancies.
Similar to optimization, having the piece of mind knowing all of your business finances are consolidated into one area will free up brain capacity and resources to be deployed elsewhere. Technology these days allow the user to customize and utilize their platforms to do what is best for the business.
Other aspects to keep in mind include the exportation of purchases and transactions, which will become easier once your business accounts, are linked. Whether it is tax time or an audit, having the ability to find all transactions in one place will be a lifesaver. It is important though to note the format the transactions will be pulled. Typically, and excel file will suffice, but ensure that will coordinate well with your other recordkeeping software.
As well as transactions being exported, linking these accounts will allow you to keep personal expenses out of the business. Having the ability to monitor all transactions will help you audit yourself, as well as any employees that have purchasing power within your organization.
With anything in life, the less moving parts the better. Human error is still a very real part of business. However, with the growth and expansion of business technology, it is now easier than ever to link all of your business accounts and have them report to one dashboard. Maintaining healthy business records will surely pay dividends later in the life cycle of your company.