Starting your own business? Open a business account at Northwest Bank
on Tuesday, July 11, 2017
Managing finances can be complicated for small-business owners, especially when such a business is first getting started. Many entrepreneurs skip the important step of opening a business bank account, and instead use personal accounts to manage their business expenses. Opening a business account at Northwest Bank can have many advantages.
If you’re serious about starting a new business, it is in your best interest to open a business account. By opening a business account, you will be better equipped to track your finances, which will make it easier to manage your business.
5 reasons to open a business bank account
According to a 2015 TD Bank survey, 56 percent of small business owners use a checking account for their personal and business finances. While doing so may seem to simplify financial management on the surface, it can also cause you to miss out on the following benefits:
- Organization – By keeping business and personal expenses separate, filing taxes on your business will be much simpler, because you won’t have to try to distinguish between the two at tax time.
- Liability protection – For certain types of businesses, a business bank account may give you added protection during hard times. If you use a personal account for your business finances, creditors will be able to seize personal finances to collect on a personal debt.
- More payment options for customers – Many business accounts can connect business owners with payment services that will allow them to accept credit cards as payment. While there are often maintenance and transaction fees associated with these services, being able to access them will give customers more payment methods which could mean more sales.
- Multiple signers – With a business bank account, you can designate others to be able to sign checks and make payments on behalf of the business. By having a trusted employee assigned to such tasks, your time could be freed up to spend on other responsibilities.
- Potential for future expansion – Opening a business bank account when you start your business is a great way to get to know your local bank. Then, as your business grows, and more financing is needed, it will be less intimidating to request a loan from the bank.