Should I open a separate business bank account?
Unless your business is a separate legal entity or operates under a “doing business as” name, you don’t have to open a separate business bank account. But, separating your personal and business funds is a wise decision, even if you aren’t required to do so.
Mixing personal and business funds can cause you to file taxes inaccurately, become disorganized, and overspend. You may accidentally use business funds to make personal purchases if you combine funds.
Opening a business bank account is a straightforward process: choose a bank, gather necessary documents, and open the account.
How can I get customers to pay me on time?
If you extend credit to customers, your business success may depend on when customers pay you. To encourage early or on-time payments, set clear payment terms, send reminders, offer an early payment discount, & offer to set up a payment plan.
How do I calculate my business’s profit?
To determine your business’s financial health, you need to know how to calculate profit. Use the following formula to find net profit:
Net Profit = Revenue – Cost of Goods Sold – Expenses