Starting with a business is a good step, but to start it well is also more profitable. Even if, the business is small and earnings are insignificant, that is no excuse not to have a business banking account separate from your personal banking account. It is the like mixing up your personal affairs with the affairs of your profession or business. You of course do not broadcast your personal affairs, so the same approach can be applied to the banking accounts.
Money is something not to be played or toyed with, so banking accounts are something to be done with utmost care. It is imperative, wise, better and healthier too in the long run to have a business banking account as soon as you open a business as you save a lot of unnecessary tensions, worries which shall in turn spoil your health and goodwill too.
Businesses are organized into different departments to keep track of the functioning and the on-goings of each, as it makes it easier to have control and keep a check on what is going on. Like-wise, having different banking accounts makes sense as the taxes, deductions and other financial aspects are different for both business and personal.
Moreover, when you started your company, you have been wise to start it out small along with your regular earnings, so do apply the same approach in the banking accounts. Keep the business banking account separate from the personal one and the benefits are multi-fold and shall accrue in the coming years as the business grows.
Benefits are the ease of accounting, book-keeping and auditing of business banking account as all business transactions are in one place. Moreover, the separate bank accounts reflect your professionalism and increase your credibility, integrity in the eyes of the clients.
It is also easy to separate the business and personal expenses, earnings and the Government and Income Tax personnel do not require any explanations for the type of the transactions. Separate banking accounts make it easy to claim deductions from the personal and business transactions separately without any hassles and proof.
Therefore, having separate banking accounts for personal and business is not a headache but a boon instead. Although, the business banking account has a fee but it is small compared to the peace of mind, time, energy and efforts saved. As, instead of spending these valuable resources figuring out the personal and business transactions and convincing the Government or the Tax officials on the same; the same resources can be used to improve and progress your business and see it grow.
SOURCE:
http://wwww.helium.com/items/754459-why-you-need-a-business-banking-account
Money is something not to be played or toyed with, so banking accounts are something to be done with utmost care. It is imperative, wise, better and healthier too in the long run to have a business banking account as soon as you open a business as you save a lot of unnecessary tensions, worries which shall in turn spoil your health and goodwill too.
Businesses are organized into different departments to keep track of the functioning and the on-goings of each, as it makes it easier to have control and keep a check on what is going on. Like-wise, having different banking accounts makes sense as the taxes, deductions and other financial aspects are different for both business and personal.
Moreover, when you started your company, you have been wise to start it out small along with your regular earnings, so do apply the same approach in the banking accounts. Keep the business banking account separate from the personal one and the benefits are multi-fold and shall accrue in the coming years as the business grows.
Benefits are the ease of accounting, book-keeping and auditing of business banking account as all business transactions are in one place. Moreover, the separate bank accounts reflect your professionalism and increase your credibility, integrity in the eyes of the clients.
It is also easy to separate the business and personal expenses, earnings and the Government and Income Tax personnel do not require any explanations for the type of the transactions. Separate banking accounts make it easy to claim deductions from the personal and business transactions separately without any hassles and proof.
Therefore, having separate banking accounts for personal and business is not a headache but a boon instead. Although, the business banking account has a fee but it is small compared to the peace of mind, time, energy and efforts saved. As, instead of spending these valuable resources figuring out the personal and business transactions and convincing the Government or the Tax officials on the same; the same resources can be used to improve and progress your business and see it grow.
SOURCE:
http://wwww.helium.com/items/754459-why-you-need-a-business-banking-account
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