If you’re the owner or manager of a business, particularly a small business, the pros at Wasatch Peaks Credit Union can provide you several important services. From various account types all the way to small business loans that help you stay on your feet through important periods, we’ve helped many businesses grow and stay on track while doing so.
One such service we provide is business checking, with options that make it incredibly easy to organize and help grow your business. If you are a small business owner and haven’t yet opened a business checking account, you’re likely missing out on several specific ways they can benefit your company. Here are some of these benefits, which double as primary reasons why we recommend business checking accounts to various small business owners.
Dividing Business and Pleasure
For starters, there are several reasons why it’s valuable to have separate accounts for your personal finances and your business. We’ll touch on a few of these areas as we move forward in this blog, but perhaps the single most noticeable? Taxes.
If you reach tax time and your personal funds are intertwined with your business funds, things often get a lot more complex – and may even put certain personal assets at risk. The same thing can happen if you’re involved in a lawsuit of any kind during this period, whether it’s related to your business or your personal life. Insulating each of these areas from each other helps keep them completely separate and avoids risks like these.
Increasing Size and Scope
As you attempt to grow your business, using personal banking simply won’t be a tenable option. Before long, your business-related transactions will massively outnumber your personal ones, and tracking the two separately will become a major chore. Ask our bankers about the horror stories they’ve heard from incorrect tracking of personal versus expenditures – this can quite literally derail an entire small business.
Checks and Professional Appearance
At some point during your business operations, you may be asked to take a check from a client or vendor. If you only have a personal account, they’ll have to make the check out to your own name – this can have an enormously negative impact on your reputation. People will think your business is small and unprofessional, and this may even impact future business.
Future Exit Planning
Another important future area to consider? Possible exit planning. Even if you have no current plans to sell in the near future, you never know what could happen down the line – and if it comes time to sell and every part of your business is tangled up with your personal finances, you simply won’t be a very attractive business to potential buyers. If you have a business checking account, on the other hand, transferring funds or assessing various financial areas will be a breeze.
For more on why business checking accounts are vital to small businesses, or to learn about any of our auto loans, construction loans or small business loans, speak to the pros at Wasatch Peaks Credit Union today.