Many business owners always try to keep their business assets separate from their personal assets. The best way to do so is with the use of separate bank accounts. Almost all banks offer business accounts, so it is very easy for a business owner to have a personal bank account and a business account for the same financial institution. There is not a huge difference between a business checking or savings account and a personal checking or savings account. Both types of accounts serve the same purpose. Read on this article to know more.
Business checking or savings account
Most business owners try to keep their business funds separate from their personal funds, because it makes the financial aspect of running a business much easier. Business name A business checking or savings account will always be under the business name. Therefore, allowing business bank cheques to be issued with the business name onto them and receipts to be printed with the business name onto them. Keeping track of business finances A business account helps the business owner to keep track of the business cash flow and transactions. A business account will provide monthly statements showing all of the cheques that were cashed under the business name and deposits that were made in the business account. That allows business owners to be able to better balance their books. Business account fees A business bank account has more expensive fees than a personal bank accounts. Some of the fees are in regards to cash balances. A business account is charged more fees if the cash deposit amount exceeds the maximum limit, and if the business account has more monthly transactions than what is allowed.
Personal checking or savings account
Wide range of personal accounts A personal bank account usually offers a wide range of products for people to use. A personal account can be in the form of a checking account, savings account or a money market account. Each of these accounts online can be used to either save money or for bill payments. Documentation The documentation required to open a personal bank account is much less than what is required for a business account. Most banks or financial institutions only require a driver’s licence and a social security number to open a personal account, along with creating a personal identification number for the use of debit cards.