If you’ve recently started a new business, one thing you might have realized is that you need to address the issue of a business bank account. You might ask: “Do I need a business bank account? Can I just use one bank account for all my personal and business needs?”
You do need a business bank account, and you also must keep it separate from your personal account. Here is why:
- It lessens your risk of being audited by the IRS.
Keeping your personal and business accounts as separate as possible is key. All business purchases should be run through your business account only, and likewise, all personal purchases should be run through your own personal bank account.
- It will help you keep track of all business purchases month by month.
- It will help you create a budget for your business that works for you to lessen your chances of overdrafting your account or overspending.
If you are using one account, it might look like you have plenty of money to spend, but in reality, that money may already be spoken for in terms of bills and other expenses.
A business bank account just one of many tools at your disposal that can help you start your business out strongly and confidently. Likewise, CPA is also an asset if you are starting a new business.
If you do not have a CPA, or if your CPA is not providing you with tools at your disposal, to provide you with sound advice and professionalism, Shank & Company, CPA, is ready to help you. We will help you set yourself, and your business, up for success. Contact us today at firstname.lastname@example.org or message us on Facebook (@ShankandCoCPA)!