Keep it Separate!
When starting a business, owner have so much to accomplish; completing legal forms, finding a location, hiring employees, business structure and marketing. What most start up businesses tend to neglect is the most important structure of running a business, money management. Business owners start spending money for all sorts of products, material and equipment to get the business started. While doing so they tend to use their personal funds and personal credit cards. Once the business has become established and you need to compile these receipts for your record keeping, using personal funds for business purchases can turn out to be a nightmare in determining which purchases were for business and which are personal.
Establishing a business bank account should be a first priority to keep you from using your personal funds and personal credit cards for business purchases. It is much easier to control your business cash flow and obtain an accurate record of your spending when it isn’t combined with your personal funds. We suggest that you give a personal loan to the business and use those funds for purchases. Deposit the loan into your business checking account for business purchases only.
There are many banks in your area eager to open a business checking account for your business with no fee or low fees. There are a few documents you would need to open a business checking account such as a business certificate, so be sure to register your business, tax ID # and business license. Check with your local branch to find out what official documents are needed.
Remember proper money management can prevent bounced checks, un-accurate records and not knowing where the money is being spent.
Need assistance in getting started with your business, Bookkeeping & More Services are here to lend a hand. For more information visit us online at www.bookkeepingnmore.com or call us at (914) 237-5088.