- June 21, 2016
- Posted by: Rebekah Dull
- Category: Consulting
As a new business owner myself, I really didn’t think of starting a bank account specifically for my company. If it hadn’t have been for my partner, I may have opened a bank account later on in my journey. As a small business owner you might have asked yourself, do I really need a bank account just for my business? In my opinion yes.
This is why you need a business bank account:
To Exude Professionalism: When running any business–even if it is in your home–it’s paramount to run the organization as a fully functioning and legitimate business. It is important for a company to pay bills with this business account. Write and accept checks with this business account. Enter into contracts as the business entity with this business account. When you have a business bank account you are able to do all of the above in a professional manner.
Bookkeeping Purposes: Cover your assets at all times with detailed documentation (aka, bookkeeping). Keeping track of the income and expenses of your company appears to be a daunting task. You’re correct, it is. Which is why you have a business bank account, but there’s assistance. Over the counter accounting software is available. Affordable programs such as Kashoo, QuickBooks, and Freshbooks are a few. These systems produce the simplicity of ease while reporting every transaction.
Peace of Mind: As a business owner, your mind is already occupied on making a profit and all the activities that it includes. You won’t remember a transaction from two years ago. Creating a business bank account helps you separate your personal finances from your company’s finances. Staying organized is paramount to your success.
As a business owner myself, having a business bank account has been such a stress reliever. Whenever I have been asked a question regarding the finances of my business, I refer to my reports from my accounting software.
I recommend you do your own research on finding the right banking institution for your organization. Not all financial institutions will be a good fit. Some banks have better benefits than others and offer better deals to businesses. Some of the best small business banks include Wells Fargo and US Bank. Check out the top business banks according to AdvisoryHQ.
Rebekah A. Dull, BA
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