Just Kidding – there really is only ONE reason!!!
Yes that’s right “It’s just easier!” That means easier for you, your bookkeeper, your customers, for everyone.
Now when I say you need a business bank account, what I really mean is that you need a separate bank account for your business, this can be as simple as opening a new account in your own name that you will use for ‘business only’. Feel free to go all out and open one in your business name through the bank if you prefer. Do what works best and is easiest for you. But make sure you do it!
It’s Easier for you
Having a single account for your business can be helpful for a number of reasons which includes the following:
- You only have one (two if you have Paypal) place to see if Jane Smith has paid her bill.
- You can get a real feel for the cash flow of your business, and an idea if you a making money or just spending it by looking at your bank balance.
It’s easier for your bookkeeper
Share a bit of love with your bookkeeper (or accountant), whether they work for you on a everyday, monthly or once a year basis, they will love having the majority of your business transactions in just one place.
- Your bookkeeper (or other accounts professional) will quickly be able to complete any of the work they do for you, GST, Debtors, Creditors, Annual accounts etc. as the information will be easy to find, follow and reconcile.
- This will mean it will cost YOU less of those hard earned $$
It’s Easier for your Customers
Many of your customers will be the loyal repeat customers, the ones that purchase from you regularly, the last thing you want is to have their payments disappearing into the wrong account.
- Your customers will love being able to add you as a payee on internet banking, and know that their payments are going to the right account, so that they can get their order ASAP.
Now, I know just like earning wages we want to use our business money for personal things too, like groceries or that new pair of jeans. The best way to deal with this is to make a transfer out of your business account so that we don’t clutter the account with a heap of personal transactions.
It works the other way too. If you need to use some personal money to pay for a business expense then it’s easiest to transfer the money into your business account first.
Remember the easier it is to find the information we need the less it will cost you.