A business account is essential for any business, whether it’s a start-up or a seasoned one. Having a separate account allows you to pay for expenses using funds that aren’t linked to your personal credit. In addition, it also helps establish business credit, which could make you eligible for loans. Business accounts typically come with features that can assist you in running your business more efficiently, like mobile banking and cards specifically designed for business.
Simplify Record-Keeping
A dedicated business account allows you to clearly distinguish your personal finances from those of your business making it easier to keep track and deduct expenses. It helps you avoid blunders in financial reporting and reduces the risk that your account will be audited.
Look Professional
A bank account that is registered under your company’s name instead of your own can make you stand out as someone who is serious about their business. It can also give confidence to potential investors, partners and clients that you are organized and reliable.
Open a Business Bank Account
Different banks offer different kinds of business accounts. The type you require will depend on the structure of your business. You’ll generally need the following documents and information to open a business bank account: