3 Ways How A Small Business Banking Account Can Help You
Having a small business can be fulfilling, but it also carries the potential to be frustrating. Figuring out what to do with your money shouldn't be one of the hassles you deal with as a small business owner. If you're struggling with any of these three problems, opening a small business banking account can help to save you a headache:
Easier Financial Tracking
One of the biggest hassles of being a small business owner is keeping an eye on your money. It's not only up to you to figure out how much is coming in, but what's going out, and what that money is being spent on. If you're in the early phases of a small business and you're trying to use your own checking or savings account to handle your expenses and to keep your income, you're going to make it harder on yourself.
A small business banking account can not only safely keep your capital and earnings, but it can also help you to more easily manage what your money is being spent on. Many banks now offer automatic tracking of what your checks and debit cards are used towards and divide them monthly into easy to understand graphs and charts. You can easily determine things like whether too much of your money is going towards office supplies, excessive expenses, or other unexpected fees.
Tax Time
For most small business owners, any fees incurred from a bank account are tax-deductible. To make matters even better, the vast majority of business bank accounts do a great deal of the work for you when it comes time to file your taxes.
Business banking accounts - especially those intended for small business owners - are designed to keep track of the money coming in and out of the account, and keeping tabs on it year-round. This information is then put into a document that you can hand over to an accountant or use yourself if you choose to file your taxes on your own. The document explains easily what your income, expenses, and losses - if any - were, and makes filing a breeze.
Increasing Your Earnings
Lastly, business banking accounts can help you to increase your earnings by generating interest.
Most banks that specialize in business accounts offer savings accounts, too. These accounts accrue interest and often have no required minimum if they're linked to a business checking account. While there are other ways of generating interest, savings accounts don't require you to save your money for a certain number of years until you're allowed to withdraw it. If something comes up and your business needs capital right away, you can access your money immediately. But when times are good, that money will continue generating interest.
Trying to run a business without a business banking account is a big mistake that will cost you time, money, and grief. If you don't have a business banking account yet, there's no better time to get one than now.