6 Practical Tips to Build a Rock-Solid Financial Foundation For Your Business

Money matters in business. Without a strong financial foundation, your business can’t thrive - let alone survive. Did you know that 50% of Canadian businesses don’t make it past their fifth year? Or that in 2022, 90,000 Canadian businesses closed their doors?

It’s easy to blame failure on market demand or branding, but the truth is that many businesses could have succeeded with better financial habits.

If you’ve ever felt overwhelmed by managing your finances or unsure where to start, you’re not alone. But here’s the good news: by focusing on simple, consistent habits, you can set yourself up for long-term success.

Here are SIX practical tips to build a solid financial foundation for your business today.

1. REFRAME YOUR MINDSET AROUND MONEY

Money isn’t just dollars and cents - it’s a tool to help you achieve your goals. Whether you’re running a passion project or scaling a company, your financial health is what keeps your business moving forward.

How to shift your perspective:

• See money as a resource, just like time or energy, that helps you work smarter and achieve your goals.

• Define your business goals and connect them to how you’ll manage money - whether that’s hiring, expanding, or simply covering your expenses.

• Ask yourself, "how would money help me achieve my goals?"

2. KEEP BUSINESS AND PERSONAL FINANCES SEPARATE

Mixing personal and business finances is one of the most common mistakes for new business owners - and it can cause major headaches.

Example: A Finty Client Sarah, an up-and-coming SaaS founder, used her personal credit card for business purchases early on. When it came time to apply for a business loan to scale her operations, she hit a major roadblock. Her mixed financial records made it impossible to show her company’s true financial health, and the bank denied her loan.

Realizing the problem, Sarah opened a dedicated business bank account and credit card. This simple step not only made her financial records more organized but also helped her secure a loan the next time she applied.

Why it matters:

• Makes tax filing easier.

• Provides a clear picture of your business’s financial health.

• Improves your chances of securing loans or investments.

How to do it:

• Open a dedicated business bank account with a reputable bank or credit union.

• Use a business credit card for expenses.

• Run all payments, subscriptions, and purchases through your business account.

• We all make mistakes, if you accidentally purchase something personal on a business account, don't panic, it can be fixed.

3. GET ORGANIZED

Financial disorganization leads to mistakes, missed opportunities, and stress. Keeping your records organized can save you hours of time—and even money.

How to stay on top of things:

1. Set up a digital filing system for receipts, invoices, and bills (e.g., folders by month or category).

2. Use accounting software to track expenses and link transactions to your bank account.

3. Build a routine of filing documents weekly or monthly.

4. BUILD AND STICK TO A BUDGET

A budget isn’t about restricting your spending—it’s a roadmap for your business. It helps you track your income, expenses, and savings, so you can make smarter decisions.

How to create a budget:

• Start simple: List your expected income and expenses.

• Review and adjust your budget monthly to reflect changes in your business.

• Use free templates or accounting tools to make it easier.

5. CONSISTENCY IS KEY

Managing your finances isn’t a “set it and forget it” task—it’s a regular habit. Delaying financial management can lead to missed opportunities, errors, and a mountain of stress later.

How to stay consistent:

• Schedule weekly or monthly check-ins to update your books.

• Automate tasks where possible (e.g., transaction imports with accounting software).

• Set calendar reminders to review receipts, invoices, and bank statements.

6. GET SUPPORT WHEN YOU NEED IT

Trying to do everything yourself? It might be costing you more than you think. Bookkeeping is time-consuming, and mistakes can lead to costly problems down the road.

Why outsourcing helps:

• Saves time so you can focus on growing your business.

• Ensures your records are accurate and tax-ready.

• Provides peace of mind knowing a professional is handling the details.

How to find support:

• Look for a bookkeeper (like Finty!) to manage your day-to-day financial records.

• Work with an accountant for tax filing and financial advice.

Conclusion: Good financial habits aren’t just about avoiding mistakes—they’re about building a foundation for growth. Start small, stay consistent, and don’t hesitate to get help when you need it.

If you’re feeling overwhelmed, that’s okay. At Finty, we specialize in making financial management simple, so you can focus on what matters most: running your business.

What’s one financial habit you’ll start today? Let me know in the comments!