Owning a business can be incredibly rewarding. It also comes with additional responsibility: As a business owner, you need a system in place to stay on top of expenses, taxes and all the financial considerations that go into running your enterprise.
Establishing a separate bank account for your business is a crucial first step. This will help you create a clear line between your personal and business finances.
Why create a dedicated business bank account?
It’s important to keep your personal and business finances separate. When business and personal expenses mingle in the same accounts, it can lead to a major organizational headache. By keeping your accounts separate, you’ll save yourself time when preparing your taxes and determining the profitability of your business.
You may also want to create multiple business bank accounts to keep funds organized. A dedicated business credit card also makes it easy to keep tabs on your spending.
Tools for managing business accounts
Whether you’re running a single-member LLC or a large corporation, there are accounting tools available to help all types of business owners with bookkeeping.
Tools like QuickBooks and FreshBooks allow you to track and categorize expenses. You can also use these tools to generate reports that analyze profitability and estimate your upcoming tax payments. Many accounting programs also come with extra features like invoicing and payments.
Prices vary for different types of software. For most business owners, the cost is easily justified by the time you save. (Plus, the cost of accounting software is deductible as a business expense!)
You can compare accounting software online to determine which tool best fits your budget and your priorities.
Getting started with business accounts
If you’re ready to take the next step and open a business checking or savings account, get in touch with a representative at your local WaterStone Bank Branch or call (414) 761-1000. We also offer business credit and debit cards and business lending services.