Your business account should be more than just a regular account

Expect banking services that are as smart, effective and data-driven as your business.

Opening a business account is one of the first things you need to do when you have a business. Even if you’re the only employee in the company, or starting it as a side hustle, a business account can help you keep your business assets and expenses separate from your own personal accounts. This makes it easier for you to track your business cash inflows and outflows, which will come in handy for when you file taxes, claim expenses, or look for external investors in the future. But aside from the day-to-day transactions, you should also be maximising the other features that come with your business banking account.

Important areas that can make or break a business

For any business to succeed, there are many things that will need to be done right. Even managing the most “straightforward” business is more complex than it looks.

Though you may have a viable business model, there are many areas related to running a business that can still go wrong, which ultimately causes the business to fail. As an entrepreneur, you must be able to handle each of these areas effectively.

Cash Flow: There is a saying that cash flow is the lifeblood of every business. This is true – good businesses fail all the time because of poor cash flow management.

For example, if you own a video production business and the overhead of it is $40,000 each month, you will need $480,000 each year in order to continue operations. You win contracts worth $500,000 and things are going well. However, the payments for the contracts won will only be made 12 months from now. You have $80,000 in your account, which is only enough to keep the business going for two months. This means your business will fail, even when it is theoretically profitable on paper.

Employees: Every business needs talent. Whether it’s an F&B outlet, a retail store or a B2B business, you need people to help you operate your business.

Using the same example above, your video production business wins the contracts and everyone is ready to get to work. Suddenly, two of your employees (in an already lean team of five) quit.

Now, not only are you unable to execute the work that someone is paying you to do, you first have to hire and train two more new employees. This will take time, money and there are no guarantees your new hires will pan out. If you fail to hire right, you will not be able to complete your projects on time and you will not get paid.
Fail to solve this in time and your business may also fail.

Growth: In the fast-changing business world that we live in today, if you are maintaining the status quo, you are essentially moving backwards. Businesses today cannot afford to do that.

Your business has to evolve with time. These include building deeper and broader capabilities, expanding your customer base as well as growing your overall revenue. It will take time to develop as this needs to be managed and monitored closely.

With the 3 areas above, keep your business competitive and sustainable in the long run.