The Unexpected Benefits of My Business Account
It’s been a few months since I set up a separate “business” account through which to funnel my business income and expenses. It’s been a great! For the past few years, I’ve simply deposited all my freelance income directly into my personal account. I found it difficult to ration the income effectively. I wasn’t able to set aside money from the profitable months to cover expenses in the lean months. The new account has been a HUGE help in that area, but that was to be expected.
An unexpected benefit, however, has been how the new account helps me feel more secure. Knowing that I can pay myself in regular intervals gives me a feeling of control that I’ve missed over the past five years. Why didn’t I do this sooner? I don’t think I was willing to take the steps to open a separate account or do anything that was truly “businesslike” because I couldn’t take my business seriously. I was afraid to fail. If I failed as a hobbyist freelancer, it wouldn’t be a big deal. I’d just be a stay-at-home mom who tried something and it didn’t work out. But if I failed as a business owner, it would be a “real” failure. I know how illogical that sounds, but emotions usually are.
The new “business” account has helped me make yet another mental shift toward making myself into an entrepreneur. I have an account to pay for business expenses. I can give myself a regular paycheck. I can develop a business budget. Now, I just have to learn how. Luckily there are plenty of budgeting software and resources I can use.
I plan to attend some webinars and online workshops provided on the SCORE website. I’ve already read several of their business finance articles. It’s a wonderful resource. I highly recommend it.
I have also downloaded Quicken for business. I haven’t started using it yet, but it’s on my computer ready to go. Baby steps, baby steps.
They way I see it, building a business is a journey not a race. I’d rather build my business slowly and steadily at a pace I can handle than to try to build it too quickly that I make costly mistakes. Since math has never been one of my strengths and accounting mistakes can be very harmful to a business, I think this is the smart way to go. “Slow and steady” builds the successful business.