Your New Small Business Needs Its Own Banking Account
Posted on: 25 June 2019
Share
If you are about to start your own business, you likely have a long list of things that need to be taken care of before you can open your doors. Equipment and inventory need to be purchased, and if you own your building you'll need to get the utilities sorted as well. But before you take your first sale, you should also make sure you are prepared to keep your incoming funds well-organized. Every small business should have its own dedicated bank account that is completely separate from your personal funds. Here's why you should reach out to a business account banking expert today.
Mixing Funds Can Get Confusing Very Quickly
Even if your business is so small that you are just selling or shipping items out of your home with no dedicated place of business aside from your garage just yet, you still need a separate bank account. As your business grows, it will become more and more difficult to keep track of incoming revenue and expenses if you are mixing personal and business funds together in the same account. A separate business account will allow you to track your progress much more efficiently in the long run.
A Business Banking Account is a Good Idea for Your Taxes
Once you open your small business, you will have additional tax concerns to consider, possibly including things like property tax or sales tax. You will also of course have to pay taxes on your profit each year. If you do not have a separate banking account for your small company, it will become more and more difficult to keep proper track of what is going in or coming out of the account and this could make the next tax season very complicated.
It Will Be Easier to Bring in a Partner or Expand
If the time comes for you to bring on an investor or partner to help you grow your business further, they are likely going to want to see your books. If you have not done a good job of keeping your business financials blocked off from your personal accounts, this could look like a red flag to a potential business partner. A separate business account is easier for all interested parties to track and will remove even the suggestion of something improper occurring between your business and personal funds.
Contact a company that offers business account banking services to open your first small business account today.