Keeping tabs on money is simple today, all that needs to be done is bringing up the checking account balance. Many small business owners have tax situations where they get pass through income and will keep their personal checking account to double as their business checking account. Instead, it’s a wise idea for a small business owner to open a business checking account. These accounts are often free if a certain balance threshold is maintained, and provide lots of benefits.
Keeping records orderly is easier said than done if personal and business accounts are conflated. Instead, the business checking account keeps everything orderly. These accounts are ideal for accountants. They provide a realistic representation of what’s coming in and going out. When planning for the near and long term, the organization found in these accounts ensures planning is based on actual, not approximate finances.
Business checking accounts allow small businesses to accept credit card payments. According to a survey by Patriot Software, only 9% of customers prefer to pay by cash. Therefore, lacking a business checking account makes it difficult for 91% of customers to purchase products from a small business. Banks might require extra money to process card payments, but the fee is quickly paid for by the transactions themselves.
Credit is something every business needs. Banks like to have an organized paper trail and a business checking account provides exactly that. With a business checking account, lenders are more likely to provide capital for small businesses to scale. Many small businesses have better access to business loans with the bank managing the business checking account. These relationships prove essential when securing small business loans and other types of funding.
Getting a business checking account and managing the account is easy with the help of a local ROI consultant. Starting a business checking account is one of the first things to do on the entrepreneurial journey. Email here.