Checking Accounts and Accounting Practices
Setting up a checking account for your business
It is highly recommended by many financial gurus that you open a completely separate bank account for your business, and keep all purchases and receipts separate from your personal account. This is suggested for many reasons including ease in tax preparation at the end of the year, as well as being able to see what money is going in and out specifically related to your business. To open a checking account under your business name, you will usually need to bring your business license in with you to prove you have applied to do business under that name. You will want to do this before you open your online store, as this is the account you will want payment to be transferred to and from, and it is easier to set this up when you open your store, rather than later. Business accounts are slightly different than your regular checking account in that they have different restrictions. Here are some examples of what to look for when choosing which bank to open an account with:
- Is there a monthly maintenance fee and if not, is this only if there is a minimum amount in the account?
- How much do they charge for checks and what styles do they offer, at what price?
- Do they offer online banking? And is it free?
- How many transactions are included? (Keep in mind that every deposit, check written, withdrawal and using your debit/credit card is considered a transaction)
- Is there a limit on how much can be deposited a month or how many deposits can be made?
- Minimum opening deposit?
- Do they offer online bill pay and is it free?
- Do they offer overdraft protection?
