As a small business owner, entrepreneur, or someone interested in going down this path in the future, it’s critical to understand the benefits of a business checking account. Yes, you have other things to worry about in the early days of your business, but you don’t want to put this on the back burner.
Here are some of the top benefits of opening a business checking account:
This is one of those benefits that you should never overlook. When you keep your business and personal finances separate — and combine it with an LLC — your personal assets aren’t in the line of fire should you be unable to pay your debts or get hit with a lawsuit.
Also, since you have a separate account, it helps keep your personal credit history and score safe should you run into financial challenges.
A Professional Appearance
You could have the best services or products in your industry, but if you don’t have a professional appearance to go along with it you could soon find yourself facing an uphill battle.
For example, when asking a client to pay you by check, it looks much more professional to have them make it out to your business rather than you as an individual. A professional image is important to your long-term success, and a business checking account can help with this.
Easier to Stay Organized
As your business grows, so will the many ways that you use your business checking account. It’s easier to stay organized when you have an account that’s used solely for business-related purposes.
For example, it’s more efficient to monitor spending and track expenses when you have a business checking account. You’re not mixing your personal expenses and business expenses.
Less Stress at Tax Time
Tax season has the potential to cause you one headache after the next. And when that happens, your stress level will go through the roof.
While there’s no way to completely eliminate this, a business checking account can help.
For instance, if you mix your business and personal expenses, it’s a challenge to know which ones you can use as tax deductions. And of course, if you make a mistake, it could trigger an audit that costs you money.
If you’re a business owner who has yet to open a business checking account, stop what you’re doing and take action. With the benefits above in mind, you’ll realize that this is one of the best decisions you can make.