Why You Should Have a Small Business Savings Account

Starting a small business savings account is generally good idea for most business owners. Many businesses make the mistake of spending everything that they earn and not putting anything back in savings. When you get started, there may not be any profits to save. As you grow, you should think about putting some back in a small business savings account.

Safety

One of the biggest benefits of starting a small business savings account is that you will have some money there during an emergency. Many businesses do not have any cushion to fall back on if they go through hard times. When times are good, you need to set aside some of the profit for the future. 

Earn Interest

Many businesses simply leave their excess profit in a checking account. If you will start a savings account, you can start earning interest on the balance. While it may not seem like much, after a certain amount time, it can really add up.

How Much to Save

There is not a specific percentage of profits that you should save for every type of business. As a general rule, you might consider saving 10 percent of the profits. This should provide you with a nice cushion after a few months and you could then cut back if you chose. 


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