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5 Business Banking Blunders

5 Business Banking Blunders

March 28, 2025

If you’re a busy entrepreneur, business banking solutions can help you gain operational efficiencies and enhance your enterprise’s financial position.

But too many small-business owners overlook key tools and best practices, leaving cash on the table and, in some cases, putting their hard-earned resources and reputations at risk.

Want to boost your business banking game? Avoid these six common pitfalls:

1. Not Establishing a Designated Business Account

Keeping business and personal funds separate ensures that your operations are streamlined and helps preserves the integrity of your business structure.

A clean, complete record of income and expenses will aid your monthly bookkeeping. It will also help you maximize your allowable deductions at the end of each tax year. Further, a dedicated account signals to prospective lenders that you mean business. Plus, for LLCs, corporations, and other legal business entities, it helps protects your personal assets from business creditors.

A Ridgewood Savings Bank Business Checking Account makes managing your money a breeze. From conducting transactions to organizing cash flow, every business needs a convenient way to handle money matters. Ridgewood helps businesses maintain financial clarity and security.

2. Using Personal Credit Cards for Business Expenses

A dedicated business credit card can help you build your business credit profile, protect your personal creditworthiness, and simplify bookkeeping.

Business credit scores and reports are separate from your personal scores and reports. A designated card can help you establish business credit while minimizing personal risk. Like a designated bank account, it also takes the hassle out of bookkeeping and tax prep. And, with smart expense management, you can enjoy affordable short-term financing, plus valuable perks like rewards points for travel.

A business needs to find a credit card that works as hard as it does. That’s why Ridgewood offers a range of Business Credit Cards that provide competitive rates, flexible credit limits, and rewards programs that can help support business growth. In addition, Ridgewood also offers Corporate and Purchasing cards specifically designed to meet the needs of mid- to large-sized organizations.

3. Failing to Automate

Today’s small business operators have their pick of powerful and user-friendly technological tools that save time, money, and liability exposure.

Explore built-in account tools and software that integrate with your bank data. From programmed invoicing to forecasting tools to vendor management, they can reduce overhead and errors. You can even access a whole dashboard of real-time KPIs (key performance indicators). Plus, as fraudsters increasingly target small enterprises, many of these tools provide an extra layer of protection against scams and theft.

4. Handling Payroll Manually

Whether you have two employees or 200, you can leverage automated payroll solutions to deliver cost savings and valuable data insights.

It used to be that payroll services were rarely cost-efficient for smaller businesses. But times have changed, and firms of all sizes can benefit from integrated HR and accounting tools. They can help to ensure swift, accurate payments and allow for in-depth reporting. They can also make it easier to remain in compliance with ever-changing tax and employment laws at the local, state, and federal levels. That’s why Ridgewood has teamed up with Paychex, Inc., a leading national payroll provider for any size business. Paychex can help automate your payroll processing, ensuring compliance, reducing errors, and saving time.

5. Not Reconciling Your Statements

Your account statements are a convenient, consolidated source of information, but it’s vital to regularly validate them against your internal records.

Maintaining consistent oversight can help you detect errors and fraudulent activity. It also confirms that your internal metrics represent your actual financial position. Catching and acting on discrepancies early means that you can help avoid cash crunches. With a reliable foundation of data, you can optimize decision-making, including smarter working capital management and forecasting.

Guidance You Can Bank On

Our Ridgewood Savings Bank's Business Banking team is here to help you grow your business—today and in the future. Whether you need support for everyday banking or long-term goals, our experts can help you find the right solutions for your business.

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