When you start a business, it’s important to establish the organization as an entity that’s separate from yourself. This may include incorporating your business and addressing other legal issues, but it should also include establishing a clear separation between your personal and business finances. By creating a separate business checking account, you can make this distinction clearer, ensuring your personal finances will be protected in the future. Additionally, opening a business checking account will provide the following benefits.
Up-to-Date Management
Just as banks provide online banking to their individual customers, they provide this same service on business accounts. The availability of online banking for your business will allow you to stay updated on the finances for your business at a moment’s notice. Before you write a check for your business, you can check the account to ensure you have the funds to cover the amount. This will help you avoid costly overdraft fees and other penalties that could harm your business’ financial standing.
Authorize Multiple Signers
You can share access to a business checking account with other individuals who work for your organization. By granting access to your trusted managers, you can share some of the responsibilities of using the account. For instance, you can send a manager out to buy equipment or supplies for the business when you can’t do it yourself. This will save you time, allowing you to attend to business matters that need your personal attention.
Link to a Merchant Account
You’ll find it easier to process and collect customer payments with a business checking account. You can create a merchant account that allows you to accept debit and credit card payments. Once you link the merchant account to your checking account, you can easily transfer funds into your business checking account. This can help you skip steps in accessing payments that have been paid to your business by your customers.
When you do decide to open a business checking account, it can pay to browse for the best deals. Many banks offer business checking accounts that pay interest on the balance, helping your business to passively earn extra income. You should also examine the fee schedules for each bank to help you determine which checking account will be the best for your business.