Rant: I used to keep all my business cash in one checking account

After a surprise $1200 tax bill last April nearly wiped me out, I started using a separate high-yield savings account at Capital One for tax money. It's a simple change, but it stopped the panic of scrambling for cash every quarter. Anyone else have a basic money move that saved their small business?

3 comments

3 Comments

anderson.david7d ago

Riveradams, you track your tax liability every single Friday? That's some serious discipline.

william_henderson7d ago

Switched to a separate account for client deposits. Makes it impossible to accidentally spend money that isn't really mine yet.

riveradams7d ago

My old boss drilled into me that separate accounts are just extra work. I keep everything in one business checking account but I track my tax liability in a simple spreadsheet every Friday. When a bill comes, the money is already mentally set aside. It forces me to know my exact cash position at all times.