4 Smart Money Moves All Small Business Owners Should Make

You can set your small business up for success by making the right money moves. 

Running a small business can be fun and rewarding. You can do something you're passionate about while making your entrepreneurial goals a reality. When you own a business, it's essential to continue to make smart financial moves so your company can thrive. 

Whether you're just starting a brand-new business venture or running your business for a while, reviewing your financial affairs and money goals is not a bad idea to ensure you're making strategic moves to set your business up for success. 

Here are a few smart money moves that all small business owners should make. 

1. Separate your personal and business finances 

While it's possible to run a business while keeping your personal and business finances combined, it's not recommended. When all your money is tied together, it's easy to get confused. 

The best practice is to open a business checking account to keep your business funds separate and organized. It looks more professional and will be much easier to manage your everyday business affairs and handle your business taxes once you do this. 

It's also a good idea to use business credit cards. You can earn rewards on your business spending and will more easily see how much money is being spent on business expenses. Review our list of the best business credit cards if you're ready to apply for a business card. 

2. Build an emergency fund for your business

Having an emergency fund to help cover emergency personal expenses is a great idea. 

But if you're a small business owner, you should also have a plan for how you will handle unexpected business expenses. Surprise costs can and do arise. If you don't yet have an emergency fund for your business, now is the time to build one. 

Setting up automated contributions to your business savings account is an easy way to make your emergency fund goals a reality. When a surprise business bill comes your way, you'll have a way to pay it thanks to your emergency fund. 

3. Set and follow a budget

Similarly to having a budget for personal expenses, setting and following a business budget is a good money move to make. You want to make sure you're making sound purchase decisions as you continue growing your small business. 

If you don't have a budget outlined, you may risk spending more money than you're making, which could lead to serious debt issues. If you have yet to outline a business budget, it's never too late to start. 

Don't be afraid to spend money on necessary purchases that will benefit your company, but make sure you're thinking through decisions before swiping your business credit card. 

4. Hire an accountant 

Guessing your way through important business financial matters is risky. Hiring an accountant is a smart money move to make if you're a small business owner. While it costs money to get expert advice, the professional guidance you receive could be well worth the investment. 

An accountant can assist in many ways, such as guiding you toward choosing the right business structure for your new business, helping you create a financial plan for growth, and maximizing business tax breaks. 

Making the above money moves could help steer you toward financial success. If you're looking for additional guidance, review our small business resources.