Regardless of how big or small your business is, when it comes to banking, you need to be sure to use a business account. In fact, you will probably find it best to have more than one account. While this may mean you need to provide some extra paperwork and documentation to the bank, it will be well worth it in the end. Of course, the obvious reason for an account separate from your personal account is to ensure you have an accurate portrayal of the financial status of the business. There are other benefits though. There are some features available for business accounts that you cannot have in a personal account. Here are just a few advantages you will receive.
Accept Credit Cards
It is very limiting to have a business that operates in cash sales only. While you can accept a check and put it into your account, a personal account will not accept and handle credit or debit card transactions. Most people now use cards for their purchases. You do not want to lose business to your competitor because you cannot take a credit/debit card. The company that handles your card sales will only deposit to a business account.
While it is possible to have an additional signer for a personal checking account, there is a limit as to the number of signers you can have. A business account can be set up to allow as many signers as you want. In addition, you can make it so that two or more signatures are required for larger transactions.
Your image is very important when you own a business. You do not want your customers to question your professionalism or worry that you are not actually an honest business because you have them write their checks to your personal account when making a purchase. It also does not look good to your merchants if you are using a personal account to pay them. There are so many different types of scams going around—make sure that the people you deal with in your business do not have to worry about your authenticity.
It really is not a big deal to open separate banking accounts for your business. The next time you go to the bank, ask to speak with the business manager to discuss the different types of business account banking services available to you. Of course, an added benefit is that the more you do business with a bank, the more they will be willing to work with you should you ever need a loan or line of credit.