Managing Your Money
Once your business is off the ground, you must manage your company’s money by making sure cash is coming in and by guarding against waste, fraud and overspending.
You can pay bills, track expenses and move money with specialized bank services to make it easier, faster and relatively inexpensive.
Be in control of the money coming in and going out
The most important part of managing your money is to know your cash position at all times. RBC can help with Online Banking:
- Online Banking allows you to review your account, set up future dated transactions and transfer funds whenever you wish. A single sign-on lets you access business and personal accounts.
Use company cash to reduce debt and create another source of income
A smart way to add to your cash flow is to use surplus cash during periods when you don’t need it. RBC can help with a revolving line of credit and online account transfers:
- Revolving lines of credit are set up to move money automatically. Borrow when you need the money and pay it back when a pre-determined amount is in the account.
- Move money between your business account, your investment account and your line of credit online.
Pay smaller interest and service charges
Avoid unnecessary service fees and NSF charges by staying on top of your cash situation and paying credit off quickly. We can help with overdraft protection, a line of credit and business credit cards:
- Credit allows you to draw cash when you need it and pay it back either automatically or online when you have cash available.
- Cover cheques and other scheduled payments using overdraft protection or your line of credit.
Track payments and reconcile bank statements faster
Keep up-to-date records of expenses and revenue faster than the old manual entry method. We can help with online account records, online cheque imaging, business credit cards and a business client card:
- Online account records offer one-stop recording, paying and reconciling. Account activity can be downloaded into accounting programs.
- Online cheque imaging allows you to see who cashed cheques and protect against fraud.
- Business credit cards keep business expenses separate from personal expenses.
- Business Client Cards allow you to make transactions at the ATM. A Deposit Only Agent Card allows you to delegate an employee to make ATM deposits.
Simplify payroll and employment tax remittances
Your employees rely on you to do payroll calculations accurately, send payroll tax deductions to the government and issue cheques. We can help with Third Party Payment, INTERAC® email transfer and payroll service:
- Third Party Payment (3PP) provides automatic payment into employees’ RBC accounts at no cost to you.
- INTERAC® email transfers are password protected, secure transfers that allow you to pay employees with accounts at any financial institution via email.
- Use ADP® payroll services to process payroll and make deductions, remittances and deposits on your behalf.
Pay suppliers on your terms
Take full advantage of supplier credit or make payments right away while keeping accurate records. RBC can help with INTERAC® email transfers:
- Secure INTERAC® email transfers allow you to pay suppliers with accounts at any financial institution and provide instantaneous records.
Pay bills on time
It’s wise to take as long as possible to pay most bills and recurring fees without getting hit with late payment fees. We can help with bill payment and online tax filing.
- Save time, cheques and postage by paying bills online, by telephone or at an ATM.
- Register for federal, provincial and municipal tax payments.
Make it easy for customers to pay you
Getting payment from customers as quickly and painlessly as possible is an important part of cash management. We can help with Moneris® payment solutions and INTERAC® email transfers:
- Moneris payment solutions allow you to accept payment by way of debit and credit cards. Payments are deposited into one RBC account with same-day account credit and online reports.
- INTERAC® email transfers allow you to receive payment electronically.
Avoid cash shortfalls
Cash shortfalls happen when either sales or collection of receivables get too slow. Prevent cash shortfalls by watching accounts and inventory closely, calling when payment is overdue, asking for deposits on large sales and making daily deposits.
You should also match customer payment terms with your supplier’s terms so cash comes in as payments go out, and use a business operating line or overdraft protection to compensate for seasonal ups and downs.
Protect yourself against fraud and theft
Keep in mind that how employees handle cash, cheques, inventory and spending on the company’s behalf will directly affect your business performance. Set clear rules from the beginning and make sure everyone knows what’s expected. Ask your RBC banker about techniques your business can use to protect against fraud and theft.
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