Advantages of a Business Checking Account

Do you own a business or have to make business transactions often? Do you hate organizing your account trying to distinguish which transaction is a personal or business one? If you said yes to one of these questions, it is in your favor to open up a business checking account. They’ll help you organize, look professional, and even help ensure you are calculating accurate taxes and deductions.

The Advantages

1. The Taxes

If you own a business, you’ve probably run into a few problems financially. It is really easy to accidentally mix up your personal and business transactions making tax season a real burden. Inaccurately calculating your taxes can lead to penalties to the IRS and missed business deductions that can save you a lot of money! Separating and organizing your personal and business accounts is a great way to not get your transactions confused again.

2. Organizations

Like said, the organization of your finances is essential to your success. You can get deductions that’ll save tons of money on your business expenses. You don’t want to pay for business expenses with your personal card because then you will get smaller deductions!

3. Customer Credit Cards

With just a personal checking account, you will not be able to accept credit cards as payment. This can be an extreme inconvenience to your customers. Having a business checking account will allow you to accept more forms of payment making it easier on your customers to not have to carry loads of cash.

4. Multiple Users

Businesses with more than 1 worker will probably have managers. Those managers will need a means to pay for various items. With a personal checking account, you can’t share your card with your co-signers. However a Business checking account will allow you to have multiple account signers that can buy items and help out more. Of course, never let someone you don’t trust co-sign with the card for your protection.

5. Professionalism and Bank Relations

When making business with others, you don’t want to be using your personal information for payments or receiving payments. It can be seen as too casual. Issuing a check to a business account is much more qualified and professional. You will also gain access to the bank’s business services that can help you. For example, you may need a loan to pay off new capital. The bank will be able to give you business focused loans that are made for purchases of capital or anything needed for the business.

Our Recommendations

Convinced that you need a business checking account now? If you are, look into Huntington and Chase. They offer the best business services and even offer bonuses for signing with them. One Chase account I would recommend looking at is the Chase Total Business Checking Account that will give you a $200 bonus! From Huntington, create an Huntington Accelerated Business Checking Account and get a hefty $750 Bonus!

Minimize Checking Account Fees

Because business checking accounts deal with larger and more frequent deposits compared to personal accounts, the fees often vary. For example, online banking is usually free for individual accounts, however business accounts may have fees. So make sure that you compare accounts closely and utilize features to make sure you’re getting the most out of your account. Also, make sure you learn about the Best Ways to Manage your Checking Account.

• Bundled Accounts: Bundling multiple accounts together may save you from paying certain fees. For example, when you link a business checking to a savings account, merchant services account, or IRA, that often waives the monthly fee.
• Free ACH Transfers: If you plan on transferring money frequently then look for a bank that allows free ACH transfers. Also, read up on ACH vs. Wire Transfers!
• Go Paperless: Going completely digital may pay off and if your bank has deposits through their app, have e-statements, etc. then some accounts will waive the monthly fee!
• Activity Limits: If your business makes a high number or dollar amount of transactions, closely compare the monthly activity limits on any potential checking accounts to find one that works best for you.

Author’s Verdict

By now, I hope that you’re at least considering opening a business checking account for your finances. It is a great way to take control of your business! A business checking account can help organize your payments, taxes, and deductions, give your customers more options, and look more professional to other businesses and banks. If you would like to open up a business checking account, I would highly recommend that you look at our full list of the Best Chase Bank Deals and Huntington Bank Deals!

In addition, we have a list of bank promotions to get some extra cash in your pockets today. You may also want to check out savings accounts if you want to get started on saving up money.