BLOG

Two bank accounts, good – one bank account, not so much

Two bank accounts good
Pea

I’m really trying but this “two bank account” thing.

It’s soooo hard.

Deliberately putting money into that second bank account each week.

I guess it’s “no pain – no gain”.

Elle

I’m with you. It can be hard work.

Except I’ve seen it work before. And it’s incredibly useful.

Moving a fixed amount of money into a savings account each week means you save as you go and build up funds to pay tax when it’s due.

And to make the odd payment that comes as a surprise.

It means you have to work harder to make a profit and to ensure you’re paid on time by customers.

But, you’re not caught short.

Pea

All a bit “goody two shoes” for my money!

But then, as you keep reminding me, it’s not my money, is it?

And I’d rather be able to pay the PAYE and the VAT when I need to without having to hide behind the sofa.

And having money set aside for a rainy day – can’t be a bad thing.

Elle

You’re right that company’s money isn’t your money.

And from time to time you may need to put some money back into the current account. Two bank accounts isn’t easy.

It’s a small business and it’s got “roller coaster” written all over it.

But over time, stick to the plan and you build a better and more resilient business.

One that’s fit for the long term.


Margins and cashflow – the bedrock of a healthy business.

We can help with both – give us a call on 020 7125 0270 or email info@bluedotconsulting.co.uk

Michael – @bluedotmichael

Related links:

Cashflow

How to improve cashflow and make more money

Profit Margins: Make more money with every sale

© Blue Dot Consulting Limited

SEARCH

MICHAEL AUSTIN

CATEGORIES