Even Small Businesses Benefit from a Business Bank Account

If you’re planning on starting your own business, one of the first things you should do as a new business owner is open a business bank account. Even if you’re only planning on running your business on the side, a business account is still an important asset that is well worth the small amounts of time and money required to open and maintain it.

The Importance of Having a Separate Bank Account for Business

By having a separate bank account for business, you can keep your personal and business finances independent from one another. Having a dedicated business account will help you maintain separate financial records for your business, thus ensuring that, should you get audited, you won’t have to pay taxes on any of your non-business income. Also, if you plan on declaring any business expenses or deductions, having a business account will make your business look more legitimate to the government, thus making it less likely that you’ll get audited in the first place!

Finally, a business account will do more than just help you during tax time – it will also give your business a more legitimate, professional appearance to your clients or customers. When you take your business seriously, so will your clients, and this could lead to a greater volume of business in the future.

How to Open a Business Bank Account

First thing’s first: don’t just go out and open a business bank account at the first institution you see! Be sure to shop around so you can be sure that you’re getting the best business bank account for your needs. Most banks charge more for business accounts than they do for personal accounts, but if you check out the accounts offered by a wide variety of institutions, you’ll certainly get a better rate.

Visit a number of banks and credit unions and explain to them that you’re looking to open a small business bank account. Give them an accurate summary of your business and your banking needs – you might be surprised by what some of these institutions can do for you! You may also find that some of these institutions offer other perks that could be valuable to your business, such as credit card and payment processing.

Worried that opening your small business bank account will be too much of a hassle? With most credit unions and banks offering online business bank accounts that you can manage over the Internet, business banking couldn’t be easier!