As a business owner, there are many close working relationships you have to maintain. Some of these people you likely talk to on a daily or weekly basis. These are the people who help you get your job done, such as your employees, suppliers, manufacturers, etc.

But there are also some important business relationships you have with people who you only talk to monthly, quarterly, or annually. These are the specialists and experts you rely on to advise you about making your business run smoothly, such as your accountant, legal counsel, and other consultants. You may not interact with these people often, but it’s important to know that they’re available with trustworthy guidance when you need it.

According to a recent survey, 14% of small to medium-sized businesses switched banks last year, and another 18% are actively considering making a switch this year. The reasons cited vary depending on each business' complex needs, but three concerns were frequently named: fees, customer service, and access to capital.

From its start in 2011, we have worked to make the Business Resource Center a valuable place for business owners to get useful insights from experts in various fields. Our goal is to help our readers make informed decisions that drive real results in their businesses.

In 2017, we were proud to offer content on a wide array of important topics for all phases of business ownership— from funding a new venture all the way through to successfully exiting and retiring. In case you haven’t gotten to catch up, here are a few of our best articles that you don’t want to miss:

In past articles, I’ve shared why a line of credit can be a great growth tool for any business, and compared the benefits of using a line of credit instead of a credit card. Business Bank of Texas offers several different types of lines of credit to business owners, including accounts receivable, inventory, and guidance lines of credit. Today, we’ll be examining what a guidance line of credit is, and why they’re useful for manufacturing companies.

What is a guidance line of credit?

A guidance line of credit serves as a perpetual approval for a predetermined period of time, which is usually a year or less. It’s a commitment from the bank to finance assets for you (the customer) as you need it. When your manufacturing business secures a guidance line, the bank has approved credit for you, and you can use it —as needed — at any point throughout the year.

Whether you’re looking to get a line of credit, plan for tax payments, or simply identify strengths and weaknesses within your business, keeping clear and accurate records is vital for business owners to succeed.

But managing your company’s finances can be daunting, and there are many ways your financial reporting can get on the wrong track (just check out Dwayne Kolly’s recent post to see what not to do). To make sure your finances run as smoothly and accurately as possible, it helps to simplify.

There are three primary financial statements business owners need to focus on to ensure their companies operate effectively.