When you’re setting up your business, the number of tasks on your to-do list can seem infinite. It's tempting to look for ways to cut back and save time. But one item on your list should never be skimped on or glossed over: opening a business bank account. If it sounds like an unnecessary hassle, consider this: for most small business owners, managing finances is their biggest burden.
Too many fiscal responsibilities? Worried about cash flow? If that sounds like you, you're certainly not alone. But opening a business bank account is one simple, headache-free way to combat these stressors and lessen your load.
If you're wondering where and how to start, we've got you covered. Here, we'll look at the benefits of opening a dedicated business bank account and give you the opportunity to do so quickly and easily with the help of Incfile and our banking partner.
Benefits of Opening a Business Bank Account
Can't you just use your already-existing bank account to manage your business finances? Sure, you could. But you'd be leaving yourself vulnerable to unnecessary risks — to both you and your business.
Here are the top three benefits of opening a dedicated business bank account:
1. Personal Liability Protection
The number one most important reason to start a small business bank account is to separate your personal and business finances. Not only does this make it easier to track expenses, file taxes and manage cash flow, it also helps you define your business as a separate entity. This, combined with forming a legal business entity, offers powerful protection to your personal assets in the case of legal action against your business.
Separating your business vs. personal finances might involve getting a small business checking account, savings account and business credit card. These should be solely for business use and should never be used for personal transactions. This separation makes managing your finances easier.
2. Better Bookkeeping and Accounting
Managing your business's income and expenses is time-consuming and — when you don't have a clear delineation between your business and personal finances — often stressful. When you have a small business checking account that stores only your business transactions, then you have all of your business income and deductions all in one place. This makes managing your bookkeeping and filing your taxes streamlined, clean and simple.
If you have employees, it will also help with payroll management and will ensure your books are always balanced, without any end-of-the-month (or year) surprises.
3. Ease of Use
When you're a busy business owner, eliminating hassle is a must. And if you have a dedicated business bank account, you'll be in a position to navigate your finances without jumping through hoops or putting your personal privacy in jeopardy.
With a business account, you can accept customer payments in multiple ways (credit cards, checks or ACH transfers) and have the money deposited directly for immediate access.
Another benefit of using a business bank account vs. personal is that you get online and mobile access to your business's financial information. Small business owners are often on the go, and having access to the financial numbers you need from anywhere could simplify your life and make accomplishing tasks easier.
The Best Benefit of All? A Bright Financial Future
Combined, these three top benefits have one proven result: a better handle on your business's financial future. The more information you have, the easier it is to plan and project your financial needs months or even years down the road. With better planning, you can start to create a rainy day fund or savings to reinvest in your business. It will also make it easy for your to apply for funding or a loan. Many lenders won’t work with businesses that don’t have a separate small business bank account or who co-mingle personal and business finances.
Incfile + Bank of America = Better Business Banking
All of this sounds great, but where do you begin? With Incfile, of course. Our partnership with Bank of America makes starting a business and running it to its full potential easier than ever. Now, when you work with Incfile to start your business, you get direct access to Bank of America’s small business bank accounts.
Already formed your business with Incfile? You're eligible for an exclusive deal through our Bank of America partnership. With this deal, you can earn:
$100 just for opening your Business Advantage Bank Account, or
$200 for opening with a higher deposit and maintaining the balance for 90 days, plus
$300 for applying and being approved for a Bank of America small business credit card
Up to $500 when you meet eligibility requirements, minimum balances and net new purchases!
What if you're a Bank of America customer, or are about to be, but haven't yet launched your small business? You're in luck. Bank of America is helping turn small business dreams into big realities. Check out their exclusive deal for new business owners, which includes:
Discounts on business formation packages from Incfile, from $70-$150 off
Free EIN filing with your business formation
Access to the rewards listed above when you open an eligible new business bank account
Best of all, our partnership is powering a streamlined, easy-to-use process that allows you to apply and open your business bank account right from your Incfile customer dashboard, anytime you choose.
Take the hassle and stress out of managing your business's finances and put yourself on a path to a bright business future with help from Incfile and Bank of America.
Page is a freelance content marketing writer with experience writing about small business, the future of the workplace and health. She also operates a weekly email newsletter where she shares advice on living an authentic, intentional life. When not writing, you can find Page traveling, fostering older cats and working as a sexual assault advocate.