Why it's a good time to have a business account

Your business's success hinges on efficiency and easy access to the resources you need to reach your goals. With that help in place, you'll be free to focus on running your company and seizing opportunities as they arise. A business bank account is one key tool that delivers this support.

While you may think it's easier to have one account to use for your business and personal finances, there are many reasons it makes sense to keep them separate. Some of the benefits can immediately improve operations for your company, while others will pay off over time as your business grows.

When you have a business account, you also have access to a business banker who can become a valuable partner in building your company. The right banking partner will listen to you, get to know the specific needs of your business, and then provide insight and tailored solutions to make your organization stronger and in a better position to scale and grow.

The benefits of a business bank account include:

Easier cash flow management

The success of your company relies on having a clear and accurate read on your cash flow, both current and impending. When you have a separate business account, many things fall into place to make this happen. Expense tracking is streamlined, since you have easier insight into what you're spending on your business exclusively. On the revenue side, a separate account lets you determine what funds you have in hand, and with projections, what is coming in, when. Also, a business account provides you with a collection of tools — online invoicing, bill payment, collections and more — that will enhance your ability to quickly bill for and collect the money you're owed — the cornerstone of good cash flow.

Time savings

Running a business will always keep you busy, so finding ways to stay focused on business priorities is an important success factor. When you have a business account, you gain access to services that can cut down on the time you spend on everything from depositing checks to managing your balance. For example, mobile account management tools let you take care of deposits and other tasks efficiently, whenever and from wherever you choose. To prevent bottlenecks for endorsing and depositing a larger volume of customer checks, you can use a lockbox service that collects and processes payments for streamlined access to your funds. Secure online banking solutions allow you to easily transfer money between accounts, pay bills, or make a deposit.

Increased sales

The easier it is for people to buy from you, the more you'll sell. Nearly half of consumers plan to use cash less in the future, and almost seven in 10 say the shift to digital payment options will be permanent. Adapting to serve buyers' payment needs will help you capture your share of this spending. A business banking partner can help you get set up to accept a variety of payment options, including credit, debit, gift cards, contactless solutions, or digital payment solutions. This means more customers to buy from you in the way they prefer, and gives you the benefit of faster payment processing.

Easier bookkeeping

Bookkeeping is simplified when you have a dedicated account for your business. You can track business-related spending and easily see where there might be opportunities to save money, either monthly or by category. You can also see trends in your revenue and forecast what shortfalls or surpluses you might have in the future. In the event of an accidental overdraft, overdraft protection transfers available funds automatically to your business account, preventing costly fees. You can make better-informed business decisions with reporting that gives you an overview of your current balances and activities, in a format that best suits your business needs as they arise.

Simplified tax preparation

Whether you're filing estimated taxes quarterly or your annual return, you need to have access to your records. A business account keeps all reporting together in one place, making it simpler to find, track, and assemble all the necessary documentation. You can also see what you spent on your business, making it easier to compile what expenses you can report as deductions.

Business credibility

With a business account, you can build a credit history for your business. This will give lenders, partners, and vendors confidence in your organization when they consider working with you. Developing good credit can enable your company to gain access to better payment terms with vendors. Your business account activity can also inform the three major credit reporting agencies, so they see what you're putting into your company. As you pay your bills on time from your account with a business credit card, you create the foundation of a good credit report. With a dedicated business account, you're signaling to partners and customers that your business is a credible, reputable enterprise they should take seriously, not just a side gig or hobby.

Access to capital

At some point, most businesses need access to financial resources to seize opportunities. A business account and the relationship with a business banking partner that goes with it can help you achieve this goal. The advice you receive can determine what financing options make the most sense for your needs — whether you're purchasing equipment, buying inventory, or investing in a growth opportunity. Short-term financing tools like a line of credit can be used only when you need them, and longer-term financing like loans can provide a stable source of funding for a fixed period.

Scalability

As your business grows, a business banking relationship will make it easier for you to find the right resources to keep scaling and expanding. Your banker can recommend solutions based on your unique need and concerns. These can include payroll as a service, so you can quickly add new employees and pay them correctly; savings options that allow easy access to your funds or offer more long-term investment opportunities; or checking accounts right for minimal monthly activity or a high-volume of transactions.

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A business account is an important step toward building your future business success. See what business banking can do for you.

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