Still Using a Personal Bank Account for Your Business? Here’s Why You Shouldn’t Be
You worked hard to get your business off the ground. Now that it is, it’s important to review how you’re managing funds for it. Are you currently using a personal bank account to take care of business needs? If so, there are many reasons to put a stop to this and open devoted business bank accounts instead.
Why you should silo your business funds
You likely have both personal and business financial goals, right? Maybe you want to buy a car priced around $25,000 within the next year, but you’re also saving for $5,000 in upgraded equipment for your business. Having all your funds pooled together can make it extremely difficult to budget because the balance doesn’t reflect how close you are to each individual goal. By dividing your funds into dedicated accounts, you’ll know exactly where you stand both personally and professionally.
Streamline tax season
As a businessowner, you can deduct qualifying expenses during tax time. If your personal and business funds are mixed, it’ll take much longer to comb through your transaction history to pinpoint business expenses. Instead, open accounts so you can simply supply business transaction history to your accountant when the time comes.
Limit personal liability
The members of a limited liability company (LLC) or a corporation are not personally liable for the debts or liabilities of the business. But comingling your personal and business funds jeopardizes this protection. That’s because, from a financial standpoint, you and the business appear to be the same. If you own an LLC or a corporation, don’t wait until trouble is brewing to separate your assets.
General Electric Credit Union(GECU) business members have access to a handful of resources specifically designed to boost their bottom line. This includes a more robust Business Online Banking and mobile app that makes it easy to manage your dedicated accounts at your fingertips. Plus, interest-earning accounts that will put business goals in reach, faster! Ready to stop comingling your finances? Reach out to our Business Services team directly – they’ll be happy to open a business bank account for you!