Business Bank Accounts and Why You Need One
Do you have a business bank account? If not, why not?!?! Stop everything that you are doing. If you don’t have a business bank account you need to attend to this matter sooner rather than later. We’re here to tell you why having a business bank account is so important NO MATTER THE SIZE OF YOUR BUSINESS!
Stop using your personal account
Mixing personal and business expenses is a recipe for disaster. Not only does it make bookkeeping that much harder but it also causes issues when reconciling these accounts as well. Financial reports can easily become a mess when utilizing this practice. Personal and business expenses are separate for a reason and you owe it to yourself not to create your own confusion. Even if you have been doing it for years, I know many of you have been spending more time separating these expenses than you would like.
Open a business bank account yesterday
This is something you should rectify at your earliest convenience. Do you research between local and national branches and find the one that best fits your business and your business needs. Not all banks are created equal and you should go for the one that will provide you with the most support and features to run your business more efficiently.
Recognizing transactions becomes simpler
It sounds like a “duh” kind of moment but when you look at a bank feed and know that every single transaction is a business expense, it makes your job a hell of a lot easier. Even if you forget to provide a receipt to your bookkeeping professional, they will be able to recognize it on the bank feed and touch base with you about said transaction. Making sure to recognize every expense in your business is key to understanding how your business is performing financially.
Credit Card Incentives
Many banks and credit card providers have cards specifically for businesses and you more often than not need a business account in place in order to get one. Building credit for your business this way usually yields more incentives as those credit cards have features specific to the business realm. You will also be able to more easily qualify for certain business loans when your business has been building credit rather than basing it on your personal credit score.
Your business size doesn’t matter
Even if you are just starting a business, getting off on the right foot will do wonders for your sanity. You may think you don’t do enough transactions to qualify for a business account. While that may be true with certain banks, that is not the standard. Not all banks have the same minimums or even the same requirements.
