Opening a business bank account is one simple, headache-free way to combat the stress of managing your many fiscal responsibilities and your business cash flow. Here’s how:
Separating Your Personal and Business Finances by Business Bank Account
One important reason to start a small business bank account is it helps you define your business as a separate entity for personal liability protection — by separating your personal and business finances.
It also makes it easier to track expenses, file taxes and manage cash flow of the business. This, combined with forming a legal business entity, offers powerful protection to your personal assets.
This involves getting a small business account and a business credit card – which should be solely for business use and never for personal transactions.
Accurate Bookkeeping and Accounting
Managing your business’s income and expenses is time-consuming. When you have a business account that stores only your business transactions, then you have all of your business income and deductions in one place. This makes managing your bookkeeping and filing your taxes streamlined, clean, and simple.
If you have employees, it will also help with payroll management and ensure your books are balanced, without any end-of-the-month (or year) surprises.
When you have a business bank account that stores only your business transactions, then you have all of your business income and deductions in one place.
Streamlined Access to Business Funds and Financials
With a business account, you can accept customer payments in multiple ways (credit cards, checks, or ACH transfers) and have the money deposited directly for immediate access, without jumping through hoops or putting your personal privacy in jeopardy.
Benefit Of Business Bank Account
Another benefit of using a business bank account is that you get online and mobile access to your business’s financial information. Small business owners are often on the go, and having access to the financial numbers you need from anywhere could simplify your life and make accomplishing tasks easier.
Combined, these benefits have one proven result: a better handle on your business’s financial future. The more information you have, the easier it is to plan and project your future financial needs thereby helping you on the road to making your business a success.
