Whether a sole-proprietor or the owner of multiple franchises, small business owners find themselves wearing many hats. In addition to their role as manager, marketer and salesperson, many small business owners are tasked with handling their day-to-day finances. To ease this responsibility, Jay DesMarteau, head of small business at TD Bank, recommends opening a business checking account, rather than relying on a personal checking account.
From professionalism to cash flow management – here are the four key reasons a small business owner should opt for a business checking account:
- Manage your cash flow better: Small business owners have better cash flow management and more advanced payment capabilities when they choose business banking over personal banking for business.
- Build your business brand: Having a business checking or business debit card with your company name on it can help establish an identity around your business. Also, customers might feel more comfortable writing a check to a business instead of a personal account – it feels more professional.
- Make your accountant happy: Having a personal checking account and using it for your small business means you aren’t separating your business and personal finances. And that can make accounting and bookkeeping more complicated.
- Growth begins at the bank: Having a small business account not only helps establish your credibility as a business, but it also helps establish a relationship with your bank. The small business owner's bank relationship can pay-off when he / she is interested in growing the business, which often requires additional financing.
This post is courtesy of TD Bank, an expert in small business financing and helping small business owners find the best possible solutions for their business so they can focus on making money and spend less time managing it.
Image courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net
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Not only does keeping a separate business account from your personal finances keep your bookkeeper and accountant happy, it can actually help you save money. A lot of business expenses are tax-deductible. Having a dedicated account specifically for business related transactions means you won’t miss out on deductions for purchases that get logged in under your personal accounts.