When you start a small business, it's important to keep your personal finances separate from your business ones. Even when your business is small, business checking accounts make managing your business easier. As your business grows, you will have a business checking account that keeps your records organized, and you won't have to worry about finding transactions within your personal banking records. If you have anyone working for you on your business accounting, they won't have access to your personal finance records. When you have a business checking account, all of your transactions are in one place, and it is easier to do your taxes when the time comes.
Know If You Are Making a Profit
If you are mixing your personal banking records with your business, it can be hard to tell if your business is making any money. When you put any earnings into your account and pay for expenses out of your business checking account, it will be clear whether your business is making a profit or not. Instead of guessing at what is a business expense and what isn't, all you will need to do is subtract the deductions from your deposits, and you will know what you cleared for the month.
Make Sure Your Taxes Are Accurate
When you run your own business, you will need to have clear, accurate financial records in order to pay taxes. A business checking account will give you all the information you need regarding profits, losses, and deductions so that you can file your taxes correctly each year. Your business checking account is proof that you are in business and should be able to deduct business expenses from your taxes.
Share the Workload
As your business starts to grow, you may need more than one person on your checking account to sign checks and deal with your banking. When you have a business checking account, you can set up an employee to use the checking account and have access to the records. Remember that if you set up your business checking account with your social security number, you have to be able to trust the person you allow access to your account.
Business checking accounts give you the professional look you want when you are starting a small business. Keep your business records separate from your personal life and expenses and get support from an employee as your business grows.