If you are starting a business one of the very first steps you should take, for the purpose of organization and proper accounting, is opening a business bank account. You really want to keep your personal and business finances separate and the first step towards proper recordkeeping is this division between personal and business.
DO I NEED A BUSINESS BANK ACCOUNT
- Besides providing you with a great way to distinguish between your personal and business finances, establishing a business bank account will also provide your business with a great deal more credibility.
- This credibility will not merely extend to potential future clients but will also extend to potential future creditors, both of which will be necessary to expand your business and make it more profitable in the future.
DO YOUR RESEARCH
- Not every business bank account provides businesses with the same tools, services, or products. In fact, many banks provide very different services to their clients. In order to get the package that best fits your needs you will need to do your research.
- Take time, regardless of how rushed you may feel to get started. Waiting a few days to make the right choice about your banking partner will always serve you better in the long run then rushing into a relationship with a bank that does not provide you with the type of product you require to be successful.
- Besides the lack of services or products you might find with a non-ideal business banking account, you may very well find an increase in the number of fees that attach themselves to a business account you selected too quickly. You will certainly want to avoid that.
- Nonetheless, keep in mind that business bank accounts will always cost you a little bit more than a personal bank account would, so make sure you get your monies worth.
HOW TO OPEN A BUSINESS BANK ACCOUNT
- Obviously, keeping your personal businesses separate from your business finances is important for your own record keeping. However, it is also something that is required by the Internal Revenue Service (IRS).
- Again, researching your best options is always the first step. Although it is not all that common to find free business checking accounts, they do exist if you spend the time to find them. Just make sure that they still provide you the services and products you have deemed are necessary to run your business successfully.
- Start looking at the business bank accounts that are being offered by your local credit unions. You will likely find that the credit unions that offer business bank accounts in your area do so at an extremely discounted rate in comparison to the larger commercial banks. If you are able to become a member of the credit union and the details of the products and services fit nicely into your business model it might be a good idea to join and take advantage of the benefits they offer.