Good luck with the start of your new business! After registering your business, it’s important to think about everything that will help it get off to a good start. That means setting up the cash flow routines you need to help you keep track of your money.
Managing cash flow is one of the most important parts of running a business, and if you do it right, it could mean the difference between staying in business and making a lot of money.
Keeping track of the numbers can be hard if you don’t know what you’re doing. Managing your cash flow means keeping track of what comes in, what goes out, and what you think you might need in the future. Planning your cash flow may require some focus and work at first, but it will be much easier if you have a plan.
Here are a few pieces of advice:
- When you first start out, it’s important to set up a good business bank account. HSBC Kinetic* offers a business current account that is made just for you, the owner of a small business. It has the features you need, such as a forecasting and cash flow visualisation tool that makes managing your company’s finances a little less risky.
- Be aware of your fixed costs, like rent, wages, technology, etc. that you have to pay every month. When you figure out this amount, you should also include taxes. Next, estimate a small amount of money coming in the first year. After a while, you’ll have a general idea of how much money your business makes each month. This will help you smooth out the highs and lows.
- When you have a better month than usual, resist the urge to spend all of the extra money. If you can, save enough money in an account you can get to right away to cover your fixed costs (overhead) for a few months. If you have a hard month, this will give you a little extra money to get by. There is no paperwork to worry about, and you can open an HSBC Kinetic savings account with just your phone or the HSBC Kinetic app.
An HSBC Kinetic Savings Account may be opened, maintained, and kept open without needing an HSBC Kinetic Current Account.
- Investing the time to learn some fundamental accounting principles can position your company for success in the future. Fortunately, technology has advanced much since the time of ledgers and ink, and there are now various tools available to reduce the hassles associated with doing the math. You can quickly get a deeper knowledge of your company with the HSBC Kinetic Current Account cash flow function, allowing you to concentrate on what you do best—running the business you love.
You can apply for a new business current account in minutes with HSBC Kinetic. So if you’re a sole trader or a single director shareholder limited company, find out more at business.hsbc.uk.
Simply download the HSBC Kinetic app and apply in minutes. With most accounts opened in 48hrs.
*HSBC Kinetic is subject to eligibility, T&Cs, credit check and fees apply.
If you would like to open a HSBC Kinetic savings account without a HSBC Kinetic Current Account, please call 0345 587 3529 or +44 1397 436960 if you’re outside the UK.