This is the third article in a three-part series about how getting back to the basics can help your small business succeed. In this installment, we examine cash flow strategies and account setups.
Author: Jacob Lombardelli, Small Business Senior Advisor
Even well-organized, focused businesses need the right banking structure to thrive. FNBO can help small business owners design account setups and cash flow strategies that support growth, optimize reserves and reduce stress.
The right banking approach can be as critical as any operational decision and can help you access capital, manage seasonal fluctuations and make confident, proactive decisions.
Why Banking Structure Matters
There's a critical truth that many business owners discover too late: how you structure your business determines how much value you can extract from it. The structure affects:
- Access to loans and credit
- Cash flow efficiency
- Ability to build reserves for slower seasons
- Opportunities for growth
This is where working with the right banker is essential. A strong banking relationship isn't just about convenience, it's about having a financial partner who understands your business model, anticipates your needs and helps you see possibilities you didn't know existed. FNBO’s small business senior advisors can help identify gaps, recommend products tailored to your industry, and guide planning for seasonal and growth-related needs.
Tiered Savings and Money Market Accounts
Every dollar sitting idle in your business checking account represents a missed opportunity. While checking accounts provide convenience for daily operations, they typically offer little to no interest earnings. For small businesses managing substantial cash reserves, this oversight can cost hundreds or even thousands of dollars annually in forgone income.
Savings and money market accounts allow you to:
- Earn interest while keeping funds fully accessible
- Build reserves during peak revenue periods
- Smooth cash flow during slower months
One of the most compelling features of tiered savings and money market accounts is how they reward business growth. The more cash you maintain, the higher the interest earned. Think of it as your bank's way of saying, "We value your growing business and want to reward your success."
For seasonal businesses like landscaping, retail, tourism or construction, tiered savings accounts can become essential cash flow management tools:
- Peak Season Accumulation: During high-revenue periods, excess cash earns competitive returns while building reserves for leaner months.
- Off-Season Access: When revenue slows, you can access accumulated funds without penalties, smoothing cash flow variations throughout the year.
- Predictable Expense Planning: Build reserves specifically for known seasonal expenses: equipment maintenance during off-seasons, inventory for peak periods or marketing campaigns timed for busy seasons.
- Enhanced Financial Stability: Rather than experiencing the stress of seasonal cash crunches, you're proactively managing the natural rhythms of your business.
There's simply no compelling reason for business owners to leave substantial cash earning zero interest in checking accounts when liquid, interest-bearing alternatives exist. Every month you delay moving excess funds into appropriate savings or money market accounts is money left on the table.
Avoid Common Banking Mistakes
There are common mistakes that small business owners make that complicate their financial picture and limit their growth opportunities. The good news is that these mistakes are preventable issues that, once addressed, can dramatically improve your business's financial health and lending prospects.
Small business owners often:
- Maintain inadequate financial documentation
- Mix personal and business finances
- Fail to plan for seasonal swings
- Neglect emergency funds
- Have disjointed AP/AR processes
The most successful small business owners learn to treat financial organization not as an administrative burden, but as an advantage over their competition. They understand that clean financial records, strategic cash management, and strong credit profiles don't just help with banking relationships, they provide the foundation for confident business decision-making.
Simple Deposit Strategies for Peace of Mind
There's nothing quite like the 3 a.m. anxiety that hits business owners: wondering if there will be enough cash for next week's payroll, questioning whether that big expense will create problems or simply feeling overwhelmed by financial uncertainty. The antidote to these sleepless nights isn't necessarily more revenue; it's often just better organization of the revenue you already have.
Aligning deposits with payroll and major expense cycles, separating revenue streams and consolidating accounts strategically can help:
- Reduce stress and financial anxiety
- Simplify accounting and reporting
- Free mental energy for growth, not constant cash management
Even small changes, like moving excess cash to interest-bearing accounts, create measurable benefits over time.
Actionable Tips
- Align accounts with cash flow cycles.
- Use tiered savings or money market accounts for excess cash.
- Maintain clear financial records to simplify lending and reporting.
- Consolidate accounts to reduce complexity and improve oversight.
A strong banking foundation ties everything together. When business owners pair the right accounts, tools and cash flow strategies with organized financials and a clear sense of priorities, they gain a system that works with them; not against them.
Consult an FNBO Small Business Senior Advisor for personalized guidance.
Read the first two installments in our Back to Basics for Small Business Success Series:
About the Author
Jacob has always been interested in business, from understanding why some succeed to brainstorming new ideas. It brings him great pride to help small business owners manage their operations and achieve their dreams.
