List & briefly explain 5 benefits of having a Business bank account.

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Explanation:

Some other benefits come from establishing a business bank account. You can gain access to services that make life easier, such as merchant account and payroll services, free online banking and, importantly, easier access to small business loans.

Explanation:

1. To protect your personal identity

Since you will be using your business account for a large number of transactions, the potential for some sort of fraudulent activity or identity theft will be higher. If you have a dedicated business account, you can limit the damage to that account alone.

2. When you want to simplify tax preparation

Having prepared many, many tax returns in my life, I can tell you that your accountant will love you for this one. And there may be a financial payoff for you as well.

When tax time rolls around, separating out business and personal expenses can be…complicated. If you’re using a tax preparer, that person will not be entirely aware of exactly what represents a business expense and what is personal.

3. When you enter a partnership or you want to incorporate

When you enter into a partnership, at least one other person will be handling financial transactions for your business. You’ll need a business bank account for that to be possible, since it can’t be done with a personal account. (Nor would you want to give a partner access to your personal account in the first place!)

4. When you want to begin accepting credit card payments

This might be the single biggest reason why you want a bank account for your business. Since the entire world trades with credit cards, you’ll have to begin accepting them as you expand your business.

You can’t accept credit cards through a personal bank account. It can only happen with a commercial account. Such accounts are set up specifically for the purpose of accepting cards. They can make the credit card process seamless, and that’s exactly what you’ll need.

5. When you want to build a business banking relationship

As your business grows, having a business relationship with your bank will become increasingly important. For example, you may want to set up a dedicated account to handle the payment of income, sales, or payroll taxes. You might also want to establish a relationship for credit purposes. This could include obtaining bank financing to purchase equipment or to expand your business.