Do you operate your business with only one bank account?

Do you operate your business with only one bank account? If yes, consider establishing three distinct business bank accounts to increase operational efficiency. These accounts include an operating account, a savings account, and a liability account.

The operating account should be used for day-to-day business expenses such as payroll, bills, and other regular expenses. On the other hand, the savings account should be reserved for future expenses and long-term goals. To achieve this, businesses should allocate a portion of their funds each week to build up their savings. These funds should be used to cover unexpected or annual expenses.

Lastly, the liability account should be used to set aside weekly funds specifically to cover future business liabilities such as GST, PAYG, Superannuation, Income Tax, and other expenses that may arise in the future.

By implementing this three-account method, businesses can achieve complete transparency and clarity in meeting day-to-day business expenses, future liabilities, and long-term business goals. This can help businesses unlock their full potential, increase their chances of success in the long run, and provide peace of mind.

So, what are you waiting for? Start implementing this approach today and take your business to the next level!