When businesses have limited transactions or are just in their initial stages, then the one thing that they tend to ignore is a business bank account. The prime focus is on establishing the business and building a strong networking chain, we, focus on most aspects of boosting our business, but, we forget the importance of having a business bank account.
What is a business bank account?
Let’s get it straight: growing and maintaining a business needs order. And with too many transactions and bank accounts, it just gets too chaotic and becomes Ariadne’s thread for the auditors. Enter your Business Bank account. A Business Bank account provides legal identity to your business. This account helps big and small business entities to maintain a separate account of their business transactions so that the finances are properly managed, and the business owner gets a clear picture of the financial status of his business. Additionally, banks provide many lucrative offers to business bank account holders that can further help in growing your business. Moreover, you can also open a business account online, with minimum documentation. If you are a small business owner aiming to go big, look for the best bank for small business in florida or similar in your area. A business bank account should be one of your prime considerations.
How can a business bank account help in building trust?
Imagine you striking a deal or grabbing a project in the name of your business, your people, your skills, and your capabilities. With such great pitching, the client is convinced that you have all the capabilities required to accomplish the project. Now, at the time of transactions, if your share your personal bank account, instead of a business bank account, then this one step will appear as a big showdown, because the client is not investing in you as an individual but in your entire business set-up. Freelancers can afford to work with a personal bank account, but if you want to run a business, a business account will establish your professional reputation. All in all, a business bank account instills trust and gives your business a more proficient outlook.
What are the advantages of having a Business Bank Account, compared to a personal bank account for business?
Apart from establishing a trustable relationship, a business bank account comes with a huge number of benefits.
-
Separating Personal and Business Finances
Businesses are all about income, expenses, profits, and taxes. Thus, when you need to manage multilayer finances that are acquired from your business, then having a separate business bank account makes life easy. Further, by separating personal finances from business earning, you can make your taxation journey simple and well managed.
-
Facilitates Business Loans
To grow your business, you will require funds, be it from banks or other financial institutions. Thus, in this scenario, having a business bank account will work for your benefit. Firstly, a bank account reflects the seriousness of your business; secondly, it will help lenders get a clear picture of your financial standing in terms of your income, your credit score, and your business expenses. Secondly, mixing your personal account and a business account can be risky if your personal credit score is low or weak. So, we recommend you open a business bank account and grow your business professionally.
-
Accept Card payments
Customers are comfortable doing business with brands that offer a secure mode of digital or the convenience of credit card payments. Having a business bank account will enable you to accept credit card payments for the products or services you offer. This is crucial for all eCommerce players, where people buy products without seeing them. Here, trust is the only important factor that drives purchases. Thus, sharing personal payment details might not work well. Additionally, with a business account, you will be able to track all payments and understand the online purchasing pattern of customers.
-
Joint Business Partnership Accounts
If you are workings with partners, then it is evident that they would also access the account to use funds. Giving your partners access to your personal account will not be a good idea. Thus, in this case, a business bank account is a necessity.
The Bottom line:
Finances are the backbone of any business; thus, it is important to manage them efficiently. Mixing your personal and professional finances can create confusion and mess, so our advice to all businesses would be – ‘Open a business bank account and grow professionally.’
You can also stay updated by subscribing to iTechCode.