If you run a business, you know the importance of keeping your financial records straight. It is not ideal to mix up personal and business records. One way you can prevent that is by opening a business checking account. A business checking account will help you keep track of your business financial records, preventing mix-ups.
Read on for everything you need to know about a business checking account.
Understanding an Online Business Checking Account
An online business checking account allows you to handle all the basic financial tasks involved in running your business, considering the several tasks involved in managing your business financial records. When running a business, you might have to pay your suppliers or vendors and settle any other bills. Besides, you might be required to receive or transfer funds electronically, and deposit or withdraw money using a business debit card.
Keeping all these transaction records might be challenging, especially if you don’t have an online business checking account. You could easily get confused and lose track of key financial details. Besides, you might get banks that offer business checking accounts. As much as these accounts have the same features as a standard business checking account, it earns you an annual percentage yield.
The fact that they can generate income makes them expensive to maintain. In most cases, established businesses are the ones that use these accounts. They have the financial ability to maintain them and enjoy their services. For small businesses, banks offer free checking accounts that can be quite useful.
If you are just starting and don’t have sufficient funds, you should consider getting this type of account. Keep in mind that it may have some restrictions on the number of translations you can do in a day. Such kinds of accounts might also have minimum deposit requirements.
How Does a Business Checking Account Work?
As is the case with a personal checking account, opening a business checking account needs you to fill out paperwork and then make a deposit. After the account is opened and approved by the bank, you will have access to different types of transactions. Some of them include;
- Writing Checks: With this type of account, you can order checks under your business name. This helps because the money will be deducted from your business account rather than your personal account. By doing so, you keep your financial records organized.
- Debit Card Payments: Through an online business checking account, you can make debit card payments. The debit card will be connected to your business account, making it easy for you to make business payments. Besides, your staff can use the business debit card for various business expenses. This goes a long way in preventing the mix up of business and personal financial expenses.
- ACH Transfers: Besides, an online business checking account helps you make ACH transfers. You can send and receive online payments through your business checking account.
Open an Online Business Checking Account
For the efficient running of your business, you should consider getting a checking account. Through the account, you will have access to vital services that are helpful to your business’s finances.