Plan to set up your business accounts in the early stages of your business to help you with management and everyday expenses. Doing so will allow you to have a strong start and prepare your business for growth. However, it’s never too late to set up your business accounts.
While every business has day-to-day needs and future plans that deserve a unique solution, CIBC recommends a bundle for business starters that addresses the needs of early-stage entrepreneurs. This bundle features the CIBC Everyday Business Operating Account® and the CIBC bizline® Visa* Card.
Your business deserves the right solutions paired with solid financial advice. Follow these best practices to manage your business revenues and expenses:
1. Go digital
Having all business transactions in one place makes it easy to track expenses, get paid on time, and pay taxes — and you can do all this online through CIBC Smart Banking for Business. Smart Banking also offers help and solutions through third party providers like QuickBooks where you can track income, expenses and payroll; Xero which allows you to create invoices and reports; and Ceridian which allows you to pay your employees online and on time.
2. Be prepared
As we continue to navigate uncertain times, many business owners learned a difficult lesson when attempting to apply for financial relief as part of Canada’s COVID-19 Economic Response Plan. To be eligible for most programs, businesses were required to have a valid business account and a 9-digit CRA Business Number. In addition, many programs required businesses’ taxes to have been filed. Establishing business accounts now isn’t just a best practice for day-to-day management and accounting, it may be the key to accessing critical relief in the future.
3. Talk to an advisor about managing your cashflow and expenses
Keeping track of your cash flow is an integral part of business operations. Tracking your cash flow allows you to see where you are spending your money, and whether you have an excess or shortfall. Having a separate business account enables clean bookkeeping and cash flow management. For day-to-day operations and cash flow management, open a CIBC Everyday Business Operating Account. Find the right account for your business by speaking to a CIBC Business Advisor.
4. Cover your cashflow with affordable credit
Many early stage entrepreneurs are hesitant to take on debt, or borrow from sources besides their bank. However, options are available to secure dedicated, low interest credit by using your personal credit bureau to apply for a business credit card. A CIBC bizline® Visa* Card is different than other credit cards as it incorporates the prime lending rate and offers rates as low as CIBC Prime plus 1.5%. This rate is much better than typical credit card rates of 19.95% or greater. Giving your business access to a manageable, inexpensive amount of credit is vital to covering day-to-day cashflow and still being able to spend opportunistically.