January 7, 2022
Alex Griffin

The Financial Services Every Small Business Needs

The Financial Services Every Small Business Needs

So, you’ve just started a small business and you want to know a little about financial services. What financial services does your small business need, and which ones can you do without or at least put off until you’re a little bigger? This blog from Profit Solutions will tell you everything you need to know.

#1: Banking

When a business first starts out, it may be very small —perhaps with only one employee, the owner! It may seem like no big deal to use personal banking accounts to run a small business, but truly, it’s better to keep them separate. Having separate accounts limits legal liability; makes it easier to track business transactions, every day and especially at tax time, and it makes it easier to obtain loans.

#2: Insurance

There are two types of insurance nearly every small business needs: general liability and workers’ comp. Workers’ comp protects your employees, while general liability protects your property. Depending on your business, additional types of insurance might be necessary. For example: if you make deliveries, then you’ll need a commercial vehicle policy. If the majority of your business is online, you should consider a cyber liability policy (for server outages and hacking incidents).

#3: Accounting and Bookkeeping

If you already have a bookkeeper –or maybe just some bookkeeping software –you may be wondering why you need an accountant. Profit Solutions provides both bookkeeping and accounting services, and we’re here to tell you that they are not the same thing.

Both bookkeeping and accounting are concerned with the financial health of a business. The difference fundamentally is in the nature of the work. Bookkeeping is about transactions: incoming and outgoing payments, to and from staff, vendors, and clients. Meanwhile, accounting is about analysis and interpretation. The day-to-day transactions, considered over time, paint a bigger picture of what’s going on. In addition, accountants have training in tax preparation and can help keep a business compliant.

These are the main financial services you’ll need as a small business owner. For most businesses, everything else can wait until you are a little bit bigger. Contact us at (877) 875 0910 or info@profitsolutions.com for your FREE financial consultation. We can keep your books balanced while giving you the financial advice you need to maximize your profits!

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