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A look at how to set up and run a small business bank account
And another thing that many small business owners fail to realize is that setting up and running a small business bank account is actually really simple, in fact it is as easy as setting up and running your personal bank account in the very beginning. But as time goes on and your business expands running your small business bank account can get harder, especially if you don't know what you are doing. But as long as you understand the basics of running a bank account then you will be able to run your small business bank account easily.
When you first start up a business it can be rather hard to separate your personal and business accounts because you are trying to get up and running. If you are using your own money to start the business you should take the money you have saved to start your business and immediately open up a business checking account so that you can keep track of your business expenses. If you have business credit cards you should also keep those separate from your personal credit cards. By keeping your accounts separate you are protecting both your personal and business interests. Basically what you are protecting yourself from by keeping two separate accounts is being liable for your business expenses through your personal accounts and not missing vital tax deductions for your business. If you have already been mixing your personal and business accounts you should stop immediately and go back and correct all of the mistakes and account for them properly in your business account. Once you have fixed all of the mistakes continue to keep your accounts separate. Keeping an accurate account of your business not only protects you for tax and legal reasons but it provides you with a clear picture about what direction your business is headed in and you can easily see where all of your money is going. This is an added benefit because it can help you cut back on unnecessary expenses, if you know where the money is being wasted. |
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