As a business owner, you’re likely always looking for financial tips that will not only make accounting easier but also help you better manage your money and increase profits. One simple way to do all three is to keep your business’s investments separate.
Any type of business with significant assets and investments can benefit from this method. However, for the sake of explanation, imagine you own rental properties. If you have just one bank account for each of your rental properties, you may struggle to keep track of which properties make the most profit and which are money pits. You may also have a hard time keeping track of rental income, maintenance expenses, etc. By separating your finances by asset, however, you can easily track income and expenses and, therefore, gain insight into the profitability of each investment. This proactive type of organization can also help you come tax time.