Business Checking Advice For The New Company
One of the first things that needs to happen if you are planning on opening a business is to get set up with a business checking account.
You can’t do business without one.
But before you open a business checking account you need to research all of the various banks in your area and compare rates, fees, perks, terms and conditions.
If you can get an interest bearing account you can earn a little bit of money on the balance kept in the bank as well.
Make sure that you will be able to gain access to your account online and that you can link it to some accounting software on your computer. You will need to keep close track of expenses and sales.
This is where a good accounting software can help enormously especially if the software can keep a running total of expenses so you always know where your balance is just by glancing at it.
The software you use should also be able to tally up a report at the end of the month for you so all you need to do is review it. You also gain the advantage of having all of your information in one place for when tax time rolls around.
It is never a good idea to combine a personal account with a business account. You will only gain the attention of the IRS and provoke them into auditing you at some point. Then try to separate the personal stuff from the business stuff…you will be pulling your own hair out not to mention kicking yourself for drawing the IRS’ attention.
Once you find the bank you want to use make sure and get all of your paperwork in order. You will need your tax ID number or FIN, Federal Identification Number so the bank can report what they need to report to the government.
Also, anyone who will have access to the account should go with you when signing the papers for the account. They will need to sign a signature card so the bank has their signature on hand for comparison.
Many banks are now moving more into the electronic age and requiring thumb prints for identification purposes on accounts. Again, anyone whho will be allowed access to the business account will need to furnish their thumb print to the bank.
next you will have to decide on what type of checks and checkbook you want. For ease of use you may choose a checkbook with three checks to each page with an area to write in who and what the check was for and the amount spent.
Especially when first starting out, you should get into the habit of reconciling your account everyday. As the business owner you will need to stay on top of every penny coming in and going out.
That checkbook and accounting software will both become your new best friends’.
Rest assured that once your business takes off, and you can afford one, you can hire a CPA to keep the books and the business checking account in order.