Whats the point of opening a Business Account?

Discussion in 'Growing and Managing a Business' started by AchimHarding, Apr 26, 2012.

  1. AchimHarding

    AchimHarding
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    I am starting out a small photography business and was wondering what was the benefit of opening a seperate business acct? I just opened on the other day. I recently found myself having to transfer personal acct funds into Business acct to make business purchases. Is this a smart thing to do? Is it okay if you transfer money into your business acct from personal funds to make business payments?
     
  2. cesspadilla

    cesspadilla
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    Hmm IMO it is the right thing. You should separate your personal account to your business account so that you wouldn't mix the two. It'll be much easier to compute your finances, etc.
     
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  3. Perfection Host

    Perfection Host
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    Plus it makes your business look a lot more professional. I'd also feel more assured paying a business rather than into someone's personal account!

    I'm new btw everyone! :)
     
  4. sigma

    sigma
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    At the beginning stage, you need to transfer some money to your business account as a fund. The reason to open a business account is for your company account audit and tax especially if you are running ltd
     
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  5. AshleyWhiteBusin

    AshleyWhiteBusin
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    It is better to be organized in this area of your business. At first it looks like a hassle, but you will know how important it is eventually.
     
  6. Mark T

    Mark T
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    You can use it to separate your personal and business account - letting you know how much are you earning from your business, as well as you have a separate to put in your business and personal earnings.
     
  7. Navida

    Navida
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    Business account makes it easy to handle your inflows and outflows. It is also look like more professional to manage business and personal accounts separately. You can easily track your business expenditures and income by your monthly accounts details.
     
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  8. band

    band
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    Taxation escape. When you have a business account and company, you claim a house or car as business purpose. The different:

    1. Business account: Income - expenses = net profit to tax
    2. Personal account: Income - tax = balance money for expenses

    There are many benefit to open business account:

    1. ask for bank loan,
    2. easy management on branch and franchise account,
    3. attract investor
    4. local domain registration. E.g. .co.uk, com.hk
    5. Hiring
     
  9. Krisz Rokk

    Krisz Rokk
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    Both accounts are important. You need your biz acc. for VAT (invoices, agreements etc.), audit.... When starting you might consider transferring some money onto your biz acc. until you have cash flow...
     
  10. daytrader

    daytrader
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    if it isn't an issue to you that business account transaction fees are much compare to the personal, i think it will be good like the rest have suggested after all it will be easier indeed to see financial details.
     
  11. kimipatel

    kimipatel
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    Well... You should open a separate Account... Personal Account and business Account. It will be an easy to handle both the Account separately.. Easy to understand all the transactions.. An also to easy to pay Tex..... It will also help you to track your business expenditures and income by your monthly accounts details....
     
  12. ernestcuellar

    ernestcuellar
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    Mine was free as well. I also think it helps develop business credit and perhaps get a business line of credit down the road with your bank.It's up to you, but it is nice to be able to keep the money you get from business separate. It does make life a lot easier at tax time.I think it lends authenticity and authority to your business.
     
  13. MartinLedley

    MartinLedley
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    It looks professional, keeps your business money separate from your personal money, makes it easier to do your books and encourages trust in who your customers are paying.

    I don't see a problem funding it with personal money, it has to come from somewhere.
     
  14. daytrader

    daytrader
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    I just learn that you could only have a paypal referral link when you are using business account.
     

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