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Finance Management for Your New Business: Scaling or Failing, Part 3

Starting a business is exciting—but finance management? Maybe not so much.

The good news is, it doesn’t have to be overwhelming. With a few smart habits and the right tools, you can turn your financial stress into financial confidence. 

Let’s walk through the essentials to keep your business on the path to growth—and away from chaos. 

 

1. Keep Personal and Business Finances Separate

Why is this important? 

It’s like trying to bake a cake with all your ingredients thrown into one bowl—it’s messy and impossible to sort out later.  

Keeping your finances separate is essential for clarity, accurate bookkeeping, and staying on the IRS’s good side. 

Here’s How: 

  1. Open a business checking account and a savings account just for taxes.
  2. Set aside 12-18% of your revenue into the tax savings account each week.
  3. Choose a bank with great online tools, like Ally, to make managing your accounts easy. 

When tax season rolls around, you’ll thank yourself for this simple, proactive step; it keeps things tidy and stress-free when it matters most. 

 

2. Setting Up Stripe for Payment Processing

Why Stripe? 

Getting paid should be easy—and Stripe is the tool to make that happen. It’s simple to set up, works with platforms like Apple Pay and Google Pay, and integrates seamlessly with other tools. 

How to Do It: 

  1. Sign up for a Stripe account and link it to your business bank account.
  2. Test it with a small transaction to ensure everything works properly.
  3. Be prepared for short initial delays while Stripe verifies your account (don’t worry, it’s normal). 

Pro Tip: Keep an eye on transaction fees (typically 2.9% + $0.30 per transaction) and make sure your pricing covers those costs. 

 

3. Linking QuickBooks for Seamless Bookkeeping

Why QuickBooks? 

Good bookkeeping is the backbone of solid finance management, and QuickBooks can save you hours of manual work. 

How to Do It: 

  1. Subscribe to a Basic Plan (around $49/month).
  2. Connect QuickBooks to your Stripe account and business bank accounts.
  3. Regularly upload expense receipts. A quick photo or scan will keep everything organized (you can do it right from your phone). 

By linking QuickBooks with your Stripe and bank accounts, you create an ecosystem where every transaction is tracked and accounted for. 

Trust me, automating your bookkeeping will save you time and headaches—and make tax prep a breeze. 

 

4. Stay Ahead of Taxes

You need to stay on top of your tax responsibilities from the get-go. Taxes might not be fun, but they’re unavoidable. Starting strong with proper planning will help you avoid last-minute scrambles (and penalties). 

Smart Tax Practices: 

  1. Save Receipts: The IRS requires receipts for expenses over $75. Digital copies work just fine; no need to keep a drawer full of papers. 
  2. Plan Ahead: Set aside 12-18% of revenue for taxes in that fancy new savings account you definitely made already. (Open it now, and I won’t tell) 
  3. Track Diligently: Use QuickBooks to estimate your taxable income and forecast liabilities. 

 

5. Understanding Payment Processing Fees

Platforms like Stripe and PayPal make life easier, but they do come with these processing fees—typically 2.9%-3.5% per transaction. 

These fees can add up, so it’s important to manage them proactively. 

(FUN FACT: Even PayPal has jumped on the crypto bandwagon and now accepts bitcoin!) 

What You Can Do: 

  1. Understand the fees associated with each platform.
  2. Build these costs into your pricing so they don’t eat into your profits.
  3. Review transaction histories regularly to identify any inefficiencies or opportunities to save. 

If you stay mindful of these fees, you’ll ensure your pricing reflects the real cost of doing business. 

 —

Finance management doesn’t have to be overwhelming. 

Starting with simple steps—like opening separate accounts, automating bookkeeping, and saving for taxes—can put you on the path to financial success and peace of mind. 

We’re here to ensure you’re not just scaling but doing so smartly and sustainably. 

And remember, the journey of a thousand miles begins with one step—or in this case, one well-managed bank account and payment processor integration. 

Stay sharp, stay informed, and let’s keep those business finances in check. You’ve got this! 💼💡 

Want more of this? Listen to S5E4 of the “Cash Flow with Pam Prior” podcast on YouTube, Apple Podcasts, and Spotify.

 

 

Pam Prior

Author, Virtual CFO, and Finance Coach
“Your First CFO: The Accounting Cure for Small Business Owners” on AMAZON
“Founder to Exit: A CFO’s Blueprint for Small Business Owners” on AMAZON