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It gets difficult as you grow. A monthly payroll for 40 employees is around $500k, which all goes out on the same day. You can't avoid having that much money in your checking account. A well-run barely-profitable company might float between 3 and 6 months salary in the bank, with spikes and dips when they get paid or buy equipment. Businesses like that need accounts capable of safely holding several million.


You could stick it in a money market fund that only invests in short term government bonds, for example. (Or a bank that does the same.)




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