When someone starts up a new business, it is tempting to get that first set of sales funds and to blow the lot but that is so irresponsible; by far the best thing is to try to save some each month to keep as a ‘rainy day fund’ for when things slow up and finances are stretched a little tighter. Putting a regular sum aside or in fact sweeping all excesses over a certain preset level into a high interest savings account is a very sensible way forward. It is tempting to keep all assets like spare cash and working frunds in the general bank account, but these never pay any interest and in fact have running costs attached to them. Once the amount of funding needed to keep the business running solvently and legally is recognised, then it can be worked out at what point any excess can be swept into the business savings account. Of course, if there is a little more left of the excess, a personal savings account would be an even better addition to the accounts. Ensuring that attention to such things as pension schemes and maybe health insurance and some sort of reward scheme could be added as you go along. These are not just sweeteners but in their way help reward hard working colleagues and employees.
Setting Up Savings Accounts for Business Makes Good Planning Sense
