Start-up businesses would often forego opening business bank accounts and opt to use their personal bank accounts instead. Why is this so? For one, opening a separate account may mean incurring additional expenses. Another thing is that new entrepreneurs would want to reduce risks andso they want to establish their business names first before considering account options. Some are also hesitant to open business bank accounts because they think that it would be too much of a hassle to deal with the legalities associated with opening a corporate account. But should you follow in their footsteps?
Advantages of Opening a Company Bank Accounts
There are in fact a lot of advantages of having business bank accounts. Here are some of them:
- It organises your finances and makes it easier for you to check your income and expenditure for the year. If you don't have a business account, it will prove to be more difficult and time-consuming since you will have to separate and distinguish the personal transactions from that of the business banking transactions.
- Another advantage of having business bank accounts is that it gives your business a professional profile especially when it comes to transactions with customers. This also shows that you are serious and focus-oriented on the ends of the business. And besides, a guaranteed business account will also help speed up the day-to-day financial transactions that you have.
- The edge of having a separate business bank account would be transparency in financial transactions and in declaration of income. The flow of income and expenses should be clear. This also further shows tax authorities that you are a responsible business owner because you uphold transparency in business transactions and can pay your taxes in a timely manner.
- Having a company or business bank account will actually get you more perks than nuisance. Some banking institutions for example would offer free business banking for a year for start-up businesses. Some banks could also offer business accounting software to be used on their day-to-day business operations on finances.
- Finally, it will be easier for you to apply for business loans if you have an active business bank account.
Online Banking at Its Peak
A great thing about the technological advancements available today is that banking can already be done online. Online banking has become a growing necessity for business people who are always on the go, thereby making financial transactions very easy and convenient, as everything is done on a virtual landscape and can be completed quickly. Online banking also provides you easy access to your business data and income, and helps you keep track of your expenses. The element of speedy transactions is magnified online as well because your borganisation now runs on your own time and not on banking hours. You can easily pay bills and receive funds in a secure and fast manner, no matter what time of the day it is. So, with common banking concerns at bay, the company can now focus more on other important matters like generating sales.