When do you know that it is the perfect time to get a bank account for your business? If you own a company of a decent size, you should probably already be having one. Will opening a business account be beneficial and necessary for my firm?
This is one question that all new business owners face during the early development of their businesses.
But, One day you will need a bank account for your company. In a real way, opening up a business account is one of the most apparent proofs that you really want to operate a business.
Here are some of the reasons why your business needs a bank account!
#1 When Your Business Has Too Many Transactions to Run Through a Personal Savings Account
When you’re just starting your business, it’s okay to run business transactions through your personal account. But as your business starts to grow, you’ll need to have an account that is specifically dedicated to your business.
You’ll know that it’s time to open a business account when the number of business transactions is more than the number of your personal transactions.
Experts at the American Bank of Missouri, suggest having a specific business account will make it easier for you to manage your business. You can collect receipts in the business accounts, as well as write checks for business expenses. These things will be easier to manage using a business account than a personal account.
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#2 When You Want to Improve Your Business Image
When you’re running a business, image matters, if you’re using personal accounts for your business transaction, this won’t help your image. It will make it appear as if you are only sort in business or even worse – that you just started the business couple of weeks ago. That image doesn’t exactly convey strength or build confidence with clients and customers.
Having a dedicated business account, on the other hand, says that you’re open for business. Your business name appears on payment methods (such as cheques) and gives customers and clients the sense that you’re here to stay.
#3 When You Want to Start Accepting Credit Card Payments
This is one of the biggest reasons why you want to have a bank account for your business. Since the entire United States trades using credit cards, you’ll have to begin accepting credit cards as your business expands.
You can’t accept credit card payments using a personal bank account. It can only happen with a business account. Such accounts are set up specifically for the purpose of accepting credit cards.
Business accounts make the credit card process seamless, and that’s what you need for your business.
#4 When You Want to Build a Business Banking Relationship
As your business keeps growing, having business relations with your bank will become critical. For instance, you may want to set up a dedicated business account to handle the payment of sales, income, or taxes.
You might also want to establish a relationship with a bank for credit purposes. This includes obtaining bank financing to expand your business or purchase new equipment.
You may also want to have a business credit card for making business transactions. Developing a specific business banking relationship will make it easier for you to obtain future financing or credit card for business.
Also, having a good relationship with the bank can help you get urgent emergency loans during difficult times too! So, it’s always good to have a business bank account for your company.
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#5 When You Enter a Partnership or Incorporate Your Company
When you get a partner in your business, at least one other person will also handle financial transactions for your company. You’ll need a business bank account for this to be possible since this cannot be done using a personal bank account. In addition to this, you surely wouldn’t want to give your partner access to your personal bank account.
A similar is the case when you incorporate your company. You might need to give company bank details access to one of the more people. So, it’s good to have a business account when more people need access to the bank account linked with the business.
#6 No Restrictions on Transactions
When your business will touch the heights, you will get more funds in your account. Personal savings accounts are often restricted to some extent. But, with the current account, you will have no such restriction on transactions and can proceed smoothly.
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Wrapping Up
Having a business bank account makes sense for various reasons. It’s simple, safe, and most efficient to have a business account for your expenses than to go through your own personal bank account. So, if you don’t have a bank account for your business, it’s time you should get one.