7 Benefits of Having Business Savings

 Managing the finances of a company or business should be separated from personal finance. The goal is to avoid the use of business funds for personal gain and reduce the risk of abuse, as well as losses in the business.

Therefore, you must have a special account as a business savings. This is the professional way of organizing business finance. This applies to all business scales, ranging from micro, small, medium, and large.

7 Benefits of Having Business Savings

Here are the benefits of business savings:

 1. Finances are more controlled

Business savings can be a place to record your business's financial footprint from the beginning of its existence. In addition, you can also see details of business income and expenses.

You can also assess how the financial health of the business. Whether the finances are stable, starting to shake, or even being sick because it is always a big stake rather than a pole.

Thus, you can make quick repairs, such as cutting some expenses that can still be delayed, making savings, or buying a really top priority. 

2. Be careful in difficult times

In business, there must be ups and downs. It is impossible for sales to always be crowded, turnover and profits continue to rise. There are times when it is quiet, turnover and profit shrinks, like in a pandemic like today.

Many companies are struggling to maintain business. Business savings can save the company from these difficult conditions. Because, you have prepared an emergency fund company in business savings.

Ideally, the preparation of a company's emergency fund is about three times your business's monthly expenses. Emergency funds on business savings can be used to deal with bad risks that can occur at any time.

3. Business is more recognized

Having business savings makes your business or company recognized by others or other parties, such as the public, banking, investors, and others. If there is a business interest regarding finances, a special company account is used, not a personal account, so it is more trusted.

The name listed on the business savings account is not in the name of personal, but the name of the company despite the scale of the MSME business. 

4. Able to attract investors

A business savings account can be used as one of the simple financial statements. You can see your income and expenses in more detail.

It can be a tool to attract investors. Especially if the company's finances are healthy or stable. It is easier to attract investors to invest in your company. 

5. It is easier to apply for a business loan to a bank

Usually one of the conditions of applying for a business loan or business capital to the bank must include a savings account. If not, the loan application may be rejected.

With business savings, the bank can also see how your business finances. When finances are healthy, open up greater opportunities for loan applications to be approved. And vice versa.

6. As a provision for expansion

Business savings can be used to accommodate the profits obtained from doing business activities. Next play again for expansion, such as opening branches, buying new stores or companies aka acquisitions, expanding marketing, export, and other targets. 

7. Can be allocated to other assets

Business savings will make it easier for you to have other assets that still have to do with business activities. For example, buying buildings or shophouses, vehicles, or production machines.

This asset can later guarantee the continuity of the business. Assets can be sold to obtain additional capital without having to borrow to anyone.