The Top Reasons Why Companies Should Open A Business Bank Account

Most people today have their own personal bank accounts. Some even go up and beyond and have two separate bank accounts: one that they use for payroll or for receiving their salaries and another one that they use for saving their money.

Because of this, business owners should also have no reasons or qualms about opening a business bank account. Although you may say that opening a business bank account is more tedious and time-consuming than opening a personal one (there are usually more documents required), in the end, the advantages will outweigh all these difficulties.

Benefits Of Having A Business Bank Account

Below are some of the noteworthy advantages of opening a bank account solely for your business:

• Having a business bank account offers you and your personal assets a protection from legal liability. In the event that your company gets sued and you unwittingly keep your personal and company finances together in one account, the court may go after your personal assets because your bank account does not reflect the two distinct entities.

• You or your accountant will find it easier to file business income and expenses for tax purposes. Because all the money that comes in and out of the bank are solely for your company’s purpose, filing the business income and expenses for tax purposes will be easier.

• A corporate or business bank account can also bolster the credibility and professionalism of your company. Typically, when clients see that you use personal checks for transactions, they may think that you are not running a legitimate business operation.

A Guide To Opening A Business Bank Account

Company owners should know that opening business bank account doesn’t have to be as time-consuming and difficult as others make it out to be. To begin with, if you already have a personal bank account, find out first what incentives and useful features or services your bank will offer if you open a business account with them. However, if your current bank doesn’t seem to be the right fit for your business, you have to look at other ones. Keep in mind that banks have different specialties, with some catering mostly to small businesses while others are known more for providing equipment loans.

Opening a checking account may be your first option but you might also want to consider looking into other financial products like lines of credit and cash management. Take the time to find a bank that has extensive experience in working with companies in the same industry as yours so that you can also take advantage of their offerings.

Lastly, look into the banking costs. There are banks that allow companies to open checking accounts for free and require a fairly minimal amount of balance. Your business's needs may change overtime and whenever this happens, you will need to evaluate your account based not only on the fees, but more importantly, the convenience the account offers.

Source:

http://www.business.hsbc.com.eg/en-gb/growth/productfamily/open-account  offers more details about opening a business bank account.