Banking is an integral part of every business. With a bank account, you can manage the important phases of your business such as payroll, transactions, accounting and tax income reporting. Therefore one of the very first things you should do if you own a small business, is to have a business banking account.
Benefits of Online Business Banking
Today, things are made a lot easier by small business online banking. Most banks now offer some type of online banking service to their clients, including small business owners. The benefits of maintaining an online bank account are numerous. To cite a few:
You can view your statements online without having to wait for them to arrive by mail each month
You can review account activity (deposits and withdrawals) for up to a certain period (depends on the bank)
It’s much easier to keep track of payments, client transactions, employees’ salaries, etc.
Transfer funds from one account to another
Lower transaction fees compared with traditional banking methods
Type of Banking Account
It would be a mistake to think that a personal bank account would do for this. On the contrary, you should have a separate bank account for your business from the start. Yes, even if your business is just a small one. In the long run, the costs of maintaining two accounts will prove to be a wise investment. Check out all the benefits:
- Lesser costs. Business accounts are entitled to expense deductions; personal ones are not.
- Clean record history. You don’t need to wade through a myriad of personal withdrawals and deposits to find your merchant transactions. When you look at your account history, you know everything in it is business-related. If they were to get mixed in the same account, you could easily miss something.
- Client confidence. If you use your business name for your transactions instead of your own name, it looks more professional. People have the feeling they are dealing with a “real” company with an office in a skyscraper building. An individual’s name, on the other hand, sounds amateurish.
- Easy declaration. The government wants to see clear and clean records when it is time for you to make tax declarations. If your account is messy, your dealings with the authorities will be more difficult. This is an unnecessary distraction for you, your accountant and your business.
- Electronic payment. When you have an online bank account, it’s easy to carry out transactions over the Web. You can accept or send payments directly with your account, or through PayPal, credit card, etc.
Today, technology has made things a lot easier for a lot of entrepreneurs. You can conduct your business from within your home. You have access to instant information that would’ve taken a professional accountant to do before. But that is if you can keep up with the ways of modern life. Don’t get left behind. Open a small business online banking account now and reap the rewards.