Watch the video below or scroll down to read the recap
In this workshop, Truist representatives Nick Hale, Oliva Faria, and Ani Chowdbury taught the basics of business finances including how to manage your cash flow, tips for building and expanding your business finances, and tips for protecting your business finances.
Before You Jump In
You'll want to reference or download the Truist Business Finance Basics Guidebook before you review this class recap. Our presenters walked attendees through information found in the guidebook: https://bit.ly/bizfinancebasicsguidebook
Your business expectations: Ask yourself the following...
How long have you been in business?
What are your annual sales?
Where do you see your business in 5 years?
What do you need to know, do, or learn to get there?
Fundamentals for business growth
Your business is unique, but there are a few things every business needs to manage finances effectively:
Business bank accounts
Efficient methods to receive payments from your customers
Efficient methods to make payments to your suppliers
Cash flow management tools
Access to credit
Depending where you are in your business, you may need one or two—or all—of these.
Manage your business cash flow
Business financial accounts help you:
Manage your business
Understand and manage business cash flow
Establish a professional reputation
Comply with IRS regulations
Personal financial accounts help you:
Pay your bills at home
Grow your retirement funds
Support your household
Reach your personal goals
Ways to keep your business and personal finances separate:
Get an Employer Identification Number (EIN) for your business
Open a business checking account and request a debit card
Open a business credit card
Pay yourself by transferring your salary from your business account to your personal account
What do you need to open a business deposit account?
For each business owner:
Social Security Number (SSN)
Date of birth
Individual percentage of ownership
For the business:
Legal business name
Federal tax ID or Employer Identification Number (EIN)
Business organization paperwork and start date
Business physical address
Tips for business debit and credit cards through responsible card use
Business debit cards are great to:
Use for everyday purchases and ATM deposits
Provide to employees who make purchases for the business
Protect you from fraud
Business credit cards great to:
Use for everyday purchases
Control cash flow
Establish credit history for your business
Protect you from fraud
What's cash flow?
Simply put, cash flow is the money in minus money out. Important parts of cash flow are your income sources (money in like selling merchandise or providing services) and expenses sources (money out like office supplies, tools and equipment, cars, employee wages, and vendors)
How do you manage your cash flow?
Feel free to check these off inside of your workbook should you choose to download it above.
Cash flow statement
A cash flow statement can:
Reflect operational trends
Identify cash flow fluctuations
Provide insight into business liquidity
Project ability to pay expenses as they become due
Cash flow statement sample
Optimize your cash flow
Reduce operational costs
Streamline accounts payable and accounts receivable processes
Outsource time-consuming tasks
Get rid of outdated or unused equipment
Evaluate your pricing for potential increases
Ask Yourself: What are your biggest expenses? Are there areas you could cut costs? Are there ways to optimize accounts payable and accounts receivable processes?
Build and Expand your business
Payment Acceptance: including debit, credit, and mobile payments like Apple Pay, Google Pay, and Samsung Pay
Payment Processing: such as credit card terminals and mobile swipers
Customer Analytics: so you can understand your target market
Transaction Protection: against fraud and data theft
Do you need merchant services?
How do you currently accept payments?
Which methods do you accept so customers can pay quickly and easily?
What type of business do you have?
Why does a business need to borrow?
Businesses borrow to:
Expand or lease a new location.
Purchase new equipment, tools, or supplies.
Gain access to startup capital.
Weather seasonal lulls.
Prepare for seasonal highs.
Consolidate existing business debt.
Have available funds for growth opportunities.
Small Business Loan - Borrow one lump sum for what you need. From inventory and unexpected expenses to debt consolidation—no collateral is required.
Small Business Auto Loan - Replace or upgrade vehicles used for business purpose
Small Business commercial vehicle and equipment Loan - Purchase new equipment or vehicles or refinance your current vehicle or equipment loans by locking in a better interest rate.
Small Business real estate Loan - Buy or refinance real estate for your business or for investment purposes.
Small Business line of credit - Access to money—whenever you need it. Manage seasonal cash flow, expand inventory, or grab hold of a new opportunity
What to know about business loans
The best type of financing for your business (credit card, loan, or line of credit) depends on your situation and what you want to accomplish.
Business credit cards are a great way to start building business credit through responsible card use.
Many business loans are unsecured, meaning they’re supported by your creditworthiness without the use of collateral.
Always make sure the loan terms align with your expected cash flow so you can meet the payment terms.
Successfully repaying a business-related loan helps your business’ credit score.
If you decide to borrow, expect that each month you’ll need to pay interest and usually some portion of the outstanding loan balance.
Lenders may require owners to provide a personal guarantee as well.
Protect your business
Business Insurance - Remember these 3 things:
Business insurance protects you against unforeseen events
Even minor mishaps can lead to large lawsuits
At a minimum, general liability insurance is a must for all businesses. Work with an insurance professional to determine the appropriate coverage for your business.
Potential Risks include:
Types of business insurance:
Commercial Property Insurance - Covers everything from building and inventory to signage and furniture, and safeguards against loss, theft, or damage. Can also protect against business interruption, loss of income, and loss of use of property due to these.
General Liability Insurance - Manages risks and protects your business from claims or lawsuits.
Life and Disability Insurance - Allows your business to continue operating in the event of death or disability.
Workers’ compensation insurance – Covers lost productivity, employee medical expenses, and missed wages.
Commercial auto insurance – Covers a company vehicle in the event of an accident, damage, or theft.
Business interruption insurance – If a covered event causes your business to close or miss out on income, this insurance protects you.
Cyberfraud insurance – Helps protect your business from data breaches and other cyberattacks.
What are 3 action items that can help you achieve your business goals?
Let's Get in Touch!
Jim Spencer, Executive Director Bluefield WV Economic Development Authority | firstname.lastname@example.org | (304) 902-2332 x 2405
Nick Hale | Truist
Faith Blackwell, Administrative + Marketing Assistant Bluefield WV Economic Development Authority | email@example.com | (304) 902-2332 x 2408