When running an operating your business, you must get business bank account and find banking solutions that works for your business (we will discuss that another time)! As soon as you have the proper documents to open that business bank account (LLC, EIN, Operating Agreement), you are encouraged to open up an account. You may ask, what if I am not generating any money yet? That is fine - still open up one and prepare for it!
Having a separate business account will make it easier for you to manage your business. You can collect receipts in the account, as well as write checks for expenses. That will be much easier to manage than if you're attempting to do it all through a personal account. Keeping your personal funds and business funds separate is not even an option, it's mandatory, especially in respects to paying taxes. When tax time comes, having the business bank account makes life easier for yourself and your tax preparer.
Additionally, having a business bank account makes your business looks professional - especially to lenders. Most lenders will deny your business application if a business bank account is not attached to your business. A bank account specifically dedicated to your business says that you’re open for business. Your business name appears on checks and other payment methods, and gives clients and customers the sense that you take your business serious.
Lastly, as your business grows, so will your revenue. In order to accept certain forms of payments and to get a merchant account to accept credit card payments, a business bank account is a strict requirement.
We hope this article helps you understand the importance of your business having a dedicated bank account. Having a business bank account makes sense for various reasons as discussed in this article. Simply put, its's way more safer and efficient to use a business account for your expenses than to go through your own personal account.