November 5, 2012 by Bill Johnson
Owning a small business can be very fulfilling, but there is a lot of hard work involved. Most, if not all, of your life is devoted to the running and expansion of your company. You are constantly planning ahead making certain that you will be able to grow. With all of the time that running a successful business requires, you need all of the help you can get.
One of the most time consuming and dull tasks that you must fulfill as a small business owner is managing your company’s finances. No business owner wants to spend time analyzing the minutia of their company’s financial inner workings—they want to get their hands dirty and actually run their business. Opening a small business checking account may not entirely eliminate the time you spend managing your company’s expenses, but it will sure help you save some.
You probably already have a personal checking account, and a Small Business Checking account works in much the same way. Opening a business account has many advantages:
- First and foremost, a business account is practically a necessity because it allows the account holder to keep their personal finances separate from their business-related finances. This will allow you to create partnerships without having to risk your personal funds.
- Business accounts help when you are managing your payroll, as well. Or, perhaps you or your employees must make frequent purchases. By opening a checking account for your small business, you can get an ATM or debit card for your employees so that they no longer have to bother you when they need to buy something for your business.
- Generally, business owners are also eligible for some great benefits from their chosen financial institution. Because you are a small business owner, your bank will assume that you have good credit and are reliable in your payments—therefore, they will view you as less of a risk and will be more eager to cut you some deals. It might even become easier for you to obtain a loan, should you ever need one.
- Many small business owners have been able to expand their companies simply because they have a business account. Once the public finds out that your company is doing so well that you have opened up an account simply to hold all of its earnings, you will build your credibility. Developing a good reputation with potential customers is vital to growing a healthy business.
- Small business owners are highly valued customers of financial institutions, particularly the smaller community banks. Banks are usually more willing to bend over backwards for their small business-owning customers since they rely so greatly upon their patronage. When a financial institution is willing to go to such drastic lengths to please their loyal customers, your small business will definitely benefit as a result.
There are numerous account types out there for you to choose from. Each account package has different features, and the benefits and disadvantages vary from bank to bank. Do some research on the web, and call around to the various banks in your are to find which one offers the right account package for your small business’ needs.