The Cons of Avoiding Business Banking

by Matt Murren
When you are just starting out a business, it may be your goal to keep the business small in the beginning, slowly building up your success until you have achieved the level that you desire. Keeping the business small and under the radar may also mean choosing not to open a business banking account, rather using your own personal checking account for the time being. This method is used often, but it is not necessarily the smartest decision you can make when trying to build up a business. There are several things that you should consider before you decide to stay strictly with your personal banking account; taxes, professionalism and more taxes.

Keeping both your personal banking and your company banking together can cause mass confusion, especially during tax season. Keeping personal and professional spending and costs separate can be quite a hassle. You are required by law to report all of your business spending in an accurate and precise way. Having both your personal and company banking all tied up together can cause quite a bit of hassle if you are not diligent, carefully recording and keeping separate all of your spending. Keeping your accounts together can also mean that you may miss some valuable tax deductions that you are entitled to. Having messy records makes it very difficult for yourself or your accountant to find all of the prudent deductions that can help your business.

Having a business of your own, whether it is large or small, keeping a professional air about you is vital in achieving a successful company. There is a certain respect that comes from a customer writing a check for one of your business purposes and having your business name on the “Pay to the Order of” line. The professionalism tends to retreat a bit when a check is written out to your name to be deposited into your personal bank account. This is where having a business banking account comes in handy. Starting a business account early on in your career can help with required finances (loans, etc.) in the future if your business were to expand to that level.

About the Author

Matt D Murren owns and operates http://www.businessbanking911.info Business Banking