Lone Star National Bank
4 Things to Keep in Mind When Opening a Business Checking Account
Aug 01, 2016
For small business owners, spending the least amount on anything business-related is very tempting - especially for a start-up. This usually includes anything from running client payments to handling business expenses through their own checking account instead of a business account. At Lone Star National Bank, we encourage all entrepreneurs to open a business checking account, even if they're just starting out as a freelancer. There are many benefits about separating business and personal finances, so let’s go through them!
A Wall for Your Finances
Once you’ve put a wall between your personal and business spending, everything makes for less work. If you’re taking care of business expenses through a business account, then your taxes become a lot easier to handle. You can sit down, total up costs and figure out how much you’ll be able to deduct from your taxes in terms of business expenses. This is where everything starts to become much easier.
The wall you’ve built between your personal and business expenses means that you can now cut the calculating in half when differentiating from which of the two funds were used! Try not to use cash when making business purchases. Use a debit card tied to your business checking account instead. This will eliminate the hassle of having to sort through cash receipts. What about business-related services? Glad you asked! Our small business checking accounts come with Internet banking and unlimited bill pay among other great services!
A Better Way to Manage Money
Another great benefit that comes from separating business and personal finances is decreasing some of the ups and downs that come with small business establishment. You can set up automatic transfers every month from your business account into your checking account. Budgeting around what you have in your personal checking account will help your finances become healthier and more manageable. You’ll also need a savings to store your profits after all taxes and other fees are taken care of. Our business savings accounts have great perks with ATM and check withdrawal transactions. You can also earn interest with a certificate or deposit.
Spending Money to Earn Money
A commercial mindset is what it takes to grow your small business into a modest form of income. Most business accounts cost a fixed amount per month to maintain (there are some banks that will offer the service for free). If you don’t think there is enough value in spending a certain amount a month on another checking account, it may make keeping track of your company’s finances a challenge. Keep this in mind when deciding if business venturing is for you.
Leave a Good Impression
Like we’ve said before, people looking to grow their business need to keep a close eye one the money they spend. This also applies to the methods they use to keep track of funds. A small business owner is not required to open a business checking account; some are sole proprietors and choose to use their individual checking accounts to conduct business. But as we mentioned above, separating a personal and business account is incredibly important, especially come tax time.
Business Services Like No Other
If you’re thinking about opening a separate checking account for your business, consider the benefits. We do all that we can to make customers feel comfortable with their finances. Whether you’re an individual needing a loan or an entrepreneur looking ahead toward your business’s finances, we can help. Contact our bank in McAllen today.