As a business owner, you want to do everything that you can to protect your company’s finances. However, when you’re first starting out, you might not be sure of the best way to do so. You could keep your money in a personal account, but as your business continues to grow and your financial needs and expectations increase, you may find that you need more financial security and oversight for your business. That’s where getting a business bank account can help. Business bank accounts are special accounts specifically tailored to help businesses save their money and keep it secure. If you’re looking to get your business finances on the right track, we’re here to help with a breakdown of some of the best business bank accounts on the market, and how a business bank account can help you to achieve your business goals.
What Is a Business Bank Account?
A business bank account is a form of financial account that business owners can use to deposit and withdraw funds that pertain to their businesses. You can apply for a business checking, savings, or credit card account (or all three, depending on your needs). In this way, business bank accounts are quite similar to personal bank accounts. However, different banks tend to offer business bank accounts with special features that make them appealing to business owners. Some of these special features can include: waiving certain wire and transfer fees, being able to carry out transactions in international currencies, processing salary payments for employees, and completing credit checks on suppliers and other businesses that you work with.
Do You Need a Business Account?
While there’s no rule that states that every business owner must have a business account, they’re incredibly effective in helping business owners manage and maintain their finances, which pretty much makes them a necessity. If you’re on the fence about applying for a business bank account for your company, you might want to consider the following benefits:
Keep Better Track of Your Business’ Finances
Opening a business bank account can help you to more easily track your business expenses, since they won’t be lumped in with deposits and withdrawals from your personal account. Being able to easily track your business’ expenses and gains throughout the year is incredibly helpful for doing taxes for your business. Instead of having to sift through transactions to assess which ones are business related, with a business bank account, you know that all money going in and out of your account pertains to your company.
Protect Yourself Against Fraud
Given the number of vendors and clients that you’ll likely be working with as a business owner, the risk for fraud is high. However, you can help to protect your company’s finances with a business bank account, as you’ll be required to get an Employer Identification Number (EIN) before applying for one. An EIN acts as a social security number for your business, so others won’t be able to impersonate you to carry out fraudulent transactions.
Boost Your Professionalism
You want to make sure that your business comes off as legitimate as possible, so other vendors and clients will want to partner with you. By having a business bank account, it shows to potential business collaborators that you’re a professional who knows how to keep their funds in check. Additionally, you can use a business bank account to apply for business loans, and elevate your business’ credit score.
What Are the Best Business Bank Accounts?
Determining the best business bank account for your company depends on your business’ needs. As such, it’s incredibly beneficial to do your research and look into the different types of business bank accounts offered by various banks. Some of the most popular business bank accounts include: Chase Bank, Bank of America, NBKC (online), and Bluevine (online). Each bank offers a number of different types of business accounts that can help your company in different ways.
How to Apply for a Business Bank Account?
In order to apply for a business bank account, you’re going to need to get an EIN, as mentioned above. In addition to this, you’re also going to want to have documents that prove your identity, your DBA certificate, articles of incorporation, and business permits and licenses on hand in order to have the best chance of getting approved for your desired account.
Having a business bank account can be incredibly helpful in keeping your company’s finances secure. In addition to keeping your money safe, having a business bank account can also help you keep track of your business’ finances and make you seem more professional when working with other vendors and clients. As a business owner, what do you think is the most important thing to consider when selecting a business bank account to apply for?
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