Finances: Establish Business Cash Management System to Avoid Cash Crisis

We have some suggstions on the types of accounts available that will work best for starting an industry specific business. will give you a sense for making your business cash management more efficient.

One of the most important tasks you’ll do when starting your business is to design a business cash management system. This is the first step to avoiding a cash crisis by monitoring where you cash is going on a daily basis, monthly basis, and yearly basis then being able to compare it to historical financial data. Business cash management will also be a topic that you’ll want to take a fresh look at and reevaluate as your business grows. Designing your management system will include decisions like:

Where you’ll put your revenues
How you’ll pay your business expenses
How you can maximize your cash on hand
How you’ll bill, collect, and deposit payments made by customers
How you’ll track business expenses
How you’ll calculate business taxes
How you’ll pay business taxes
 
Putting the right business cash management system in place will help you stay organized and efficient and keep you on top of how your business is doing financially.

If you’re just starting a new business cash management, there are several business startup tools to get you thinking about the types of accounts you’ll need as well as your day-to-day financial tasks. Each of the types of accounts mentioned will be detailed in later topics in the Finances section so that you can take a closer look at each of your options.