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.
- 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.