Sometimes keeping the finances of your small business organized and well-managed is harder than you anticipate. Between day-to-day administrative tasks, business planning and client management, there simply aren’t enough hours in a day. To help you keep your finances on track, below are three common financial pitfalls and how to avoid them:
1. You never learned to delegate: While you may hesitate to pass certain tasks on to someone else, trying to complete every task AND run your business is both stressful and inefficient. Learn to delegate time-consuming tasks like inventory or status reports to employees you trust. And don’t hesitate to hire a professional for tasks neither you nor your employees can handle. Having a trusted CPA, banker and IT tech on hand to assist you when you don’t have the time or skills to complete a task—such as payroll or taxes – will be hugely beneficial.
2. You didn’t separate your finances: We can’t stress enough the importance of keeping your business finances separate from your personal finances. Without it, your business lacks both organization and credibility. Separate business and personal accounts are crucial to helping you better manage bills, taxes and other payments, and help to reduce your personal liability in your business.
3. You forgot to plan for cash flow: Cash flow issues can sink a small business. When cash is flowing, plan ahead by applying for a line of credit or business loan. This will ensure you have the funds you need when cash is scarce, without having to reach for a high interest credit card. Telhio Credit Union offers lines of credit and business loans that will give your business the peace of mind that additional capital provides:
- Business Lines of Credit: for payroll, working capital or short-term payable obligations, as well as a revolving line of credit to finance your business.
- Small Business Association (SBA) 7a or 504 Loans: for the purchase of land and buildings as well as the expansion or conversion of existing facilities.
- Commercial and Real Estate Loans: for the purpose of purchasing or refinancing commercial or industrial real estate.
Telhio Credit Union is here to help your small business succeed. Contact our business representatives today at 614-225-7800, to learn more about our business services.
For more financial tips for small businesses, visit the Small Business Administration website at www.sba.gov.
Telhio is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking, Marion, Pickaway and Union counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers branching offices throughout Central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.