When opening your own business, open a Business Bank Account to keep separate from your personal account!
This is highly important as it’ll help you keep track of your business expenses and proves that your business is legit when filing with the IRS. Make sure to keep all your invoices and receipts to match up to your checkbook and bank statement entries when income tax time rolls around.
Read on to see the Importance of Business Bank Accounts! Check out our Best Business Bank Bonuses, here on HMB from institutions like Chase, Huntington, TD, HSBC and more from our extensive list of bank deals.
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Reason For A Business Bank Account
Still contemplating whether or not you should open a business bank account? We’ve compiled a list of reasons to help you with your decision.
Accurate Book Keeping
Imagine mixing your business and personnel transactions in one account over the course of one year, this would be a mess to book keep as you try to sort personal from business expenses when filing for taxes.
Proof of Business
The IRS needs you to be able to show that your business is really a business and not a hobby. If you have losses that you deduct from your income, then the IRS may decide you are conducting a “hobby business”, which will invite an audit.
Required for Incorporated Businesses
If your business is incorporated, you are required by the IRS to keep a separate business bank account.
Clear Audit Trail for IRS
If you every get audited by the IRS, it’ll be easier if you have clean record keeping and a separate bank account. Just keep all your invoices and expense receipts as backup material.
Being able to keep a business account enhances your professionalism. When writing checks to suppliers, they’ll see that the check is from a real business.
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If you’re planning on owning your own business or currently have one, make sure to get a separate Business Bank Account!
Having your own Business Bank Account is important and it makes it easy to keep track of your business expenses and more, proves you have a valid business and more.
Additionally, it makes your business seem more professional as it’ll seem more establish when you give a check to suppliers with an actual company name on it versus your own.