As a business owner, one of the most valuable things you’ll ever do is learn how to manage your money effectively. When you know how to manage your money, you won’t have to worry about tax flow or paying your taxes, as everything will be accounted for and taken care of.

Below are some key pieces of advice you’ll want to remember when managing your money as a business owner. Take a look:

Never Mix Your Business and Personal Expenses

If you mix your business and personal expenses, you’ll face many issues, including issues with your tax, personal liability, inaccurate accounting records, and more. Have both a personal budget and a business budget. While it’s not a good idea to have a credit card and use it whenever you feel like it, using it for business expenses if you know you will be able to pay everything off on time will keep it all in one place.

Your accountant will be very grateful that you’ve gone through the trouble to keep things separate for them!

Always Pay Your Bills On Time

It’s so important to pay your business bills on time. If you fail to pay your credit cards or loan payments off on time, you’re going to be paying through the nose when it comes to interest. Even paying late fees to your vendors and utilities will add up eventually. Paying your taxes late can come with serious penalties too. Avoiding late fees can and will make a huge difference to your cash flow.

Always Negotiate With Vendors

Before you sign a contract, you should take the time to negotiate with vendors. You won’t get a good bargain or deal if you don’t ask for a better one! Take a look at purchase terms, such as late payment penalties, and see if you can negotiate something better.

Become More Frugal

Sometimes, there’s such a thing as being too frugal; but chances are, there are ways you can become even more frugal to improve upon what you’re currently doing. For instance, you could buy major equipment second hand by looking at equipment for auction, and you can even choose to become more eco-friendly to save money on your bills. Make more of an effort and it will all add up.

Learn As Much As You Can About Finances And Cash Flow

You need to make sure you have the skills and knowledge necessary to handle your finances. You’ll need to make huge money related decisions for your company, so even if you do end up hiring an accountant right away, learning the basics yourself will go a long way towards helping you. You could take a course online, or even at your local college. Learning all about how cash goes through your small business will really help you to improve your view of money and manage it better!

Managing your money as a business owner may not come naturally to you, but it’s something you can work on and get better at. Start now!