Benefits of a Business Checking account

Benefits of a Business Checking Account

If you are one of those who joined the startup movement, congratulations! Starting your own business gives you the opportunity to fulfill your purpose and be your own boss!

Now that you are the boss, one of your fundamental tasks is to manage cash flow. Having a bank account is essential to this aspect. If you are the sole proprietor of the business, you can still use your personal account as you are not legally obligated to have a separate business checking account.

However, whether your enterprise is a sole proprietorship or a partnership, having a separate business account makes perfect sense. Here are some reasons why:

It’s Easier To Keep Track of Your Finances

Using your personal checking account for your business may work initially, but it can complicate the accounting process in the long run. Getting your supplier payments mixed up with your grocery expenses definitely won’t look good on a spreadsheet.

Having a separate business account lets you easily track customer payments, merchandise purchases, supplies expenses, and any other cash that comes in and out of your business. This also prevents the tendency to use business funds for personal expenses.

Your Business Will Look More Professional

Having a bank account under your registered business name establishes your credibility. Customers feel safer when they deposit money to a business account compared to a personal one.

Filing Taxes Is Simpler

If you are a sole proprietor and you use your personal account, the Internal Revenue Service (IRS) will ask you to sort out personal transactions from those of the business. This is so you can file your taxes accurately.

With a business account, calculating and filing your taxes is simple. You can avoid stress when tax season comes around.

You Can Protect Yourself from Liability

If something goes wrong in your business, having a business account can help protect you from personal liability. It proves that you and your business are separate entities, thus protecting your personal assets in the event of a lawsuit or a sizable liability.

Your Business Is Geared for Growth

When your startup grows, you will definitely need a business bank account. As previously mentioned, a business account streamlines your accounting process and legitimizes your enterprise. It is also required when applying for a business loan or credit card. When your big break comes, you won’t feel rushed to open a business checking account as you already have one.

Is your startup ready to take on the next level? Open a small business checking account with Liberty National Bank today! Our commitment is to help you achieve your business and financial goals. For more information, get in touch with any of our branches in Oklahoma and Texas.