One does not need to be a genius to understand that money and profit are important to any business. Managing your finances is a far more difficult task that you can probably imagine. Many starting businesses fail due to the fact that their owners think about the long term strategies but fail to think about immediate expenses and startup costs. Both personal and business finances are ruled by the same set of rules, although these spheres are quite different, unless you are running a very small business that will have to depend on your personal finances. Here is a small set of rules that will help you optimize and balance both your personal and business finances.

Separate your finances. Even if you are running a small business it will be a good idea to separate your personal money from business. One must create a separate bank account that will be used for business purposes only, such as business related expenditure and profit accumulation. This idea will also come handy in terms of income taxation.

Keep improving your business credit. This is indeed a complicated task, however it will pay off. Studies show that many businesses have recently improved their credit profiles, meaning that there are now a lot of competitors around. A good credit history will become an important asset toward getting another loan for your company.

Create a budget. Tracking capital expenditure as well as strictly following the budget are two most important aspects of a good financial system. If you are running a small business it is necessary to decide on your personal and business expenses in order to decide the amount of money that has to flow in and out every month to satisfy all your personal and business needs.

Never borrow money against your business. This is the rule that has always been easy to violate. Borrowing money from your business or vice versa may cause a cycle that will never stop. It is very tempting to invest more into business when things are going bad or take the money out of business when things are going great. Do not try to mix up personal and business finances: pay yourself a fixed salary.

Get good accounting and sales staff. Many underestimate the value of a professional accountant or a sales manager. However, if your business is not that big or you require additional help on accounting and sales, you might consider a software solution. Sales processes tracking software as well as other finance and administration software solutions will definitely be a quite inexpensive solution that will either substitute or help your accountant.

It will take quite a while to make your business blossom. However, no one will take care of the above mentioned essentials except you.