Why Every Business Should Consider a Checking Account
Anyone in the world of business knows how many different roles the business owner is expected to assume when it comes to the management of the entity.
From housekeeper and bookkeeper, to staff manager and product developer, business owners, especially small to mid-sized ones, are generally looking for anything that could help them cut costs and save time in the process.
Managing finances and balancing budgets, not to mention navigating tax season, become nearly impossible, which is why business owners today consider the benefits of opening checking accounts specifically for their business. This account lessens tax headaches and liabilities, enables more sales, and provides capital growth through the banking institution.
Every business owner loathes tax time. It’s the time of year when they need to mull over their finances, profits, and losses, and throw it altogether, only to learn about what money they owe in state and federal taxes. By having a checking account, business owners will keep their business revenue and expenses separate from their personal items. When it’s time to track all of these transactions, it will make the process much simpler. Imagine combing through one bank account that contains everything from Christmas present receipts, to new office chairs and desks? Yikes.
Not to mention, if a business owner is thinking of incorporating their operation, they absolutely need a business account. If only a personal account is used, the corporation’s liability is no longer limited to just the business, enabling the IRS to pursue the owner’s personal assets for debt collection.
If everything is coming out of your personal checking account, you certainly won’t let your employees access the account. That means mailing checks, signing debit card receipts, and making deposits is falling on your shoulders alone.
To engage your staff, with a business checking account, multiple individuals can become signers, helping you to make sure payments are being quickly and efficiently processed. However, with any kind of financial account comes the risk of theft, which means selecting the employees signed with the business checking account should be a lengthy process.
More consumers prefer the option to pay electronically or with a credit card today. If you only accept cash or check, these customers will walk away from your establishment. Opening a business checking account gives you the power to process debit and credit card sales.
Do note, these services come with a merchant charge that will be added on each month. However, be on the look out for banks that offer discounts on processing services to certain type of account holders.
Setting Up For The Future
Even if your business is small right now, chances are you want it to be bigger in the future. Expansion starts with bank investment and loans, which means getting to know your bank and account now will benefit you in the long run when you’re ready to take your operation to the next level.