If you are a client of mine, you will know I am always telling you to keep your Personal & Business bank accounts separate! Always! No exceptions!
And Why?
- Having commingled accounts may put your personal accounts at risk in the event of an audit from the CRA
- Having separate accounts make it easier at tax time to guarantee you are maximizing your taxable expenses for your business
- Ensures you will have a clear picture of your business success, or seeing the areas of financial improvement for your business
- Helps improve your business credit score
- It keeps your Bookkeeper SUPER happy!
What will you use this business account for?
You will use this account for depositing all incoming monies for your business. Additionally, you will pay ALL business expenses out of this account.
Where should I open my business bank account?
Are you happy with your current bank?? If you are satisfied with the service & features provided by your current bank, I recommend starting your search there. However; if you are not, I suggest doing some research to find the right bank for your needs.
What should I look for in a business account?
When looking for a business bank account keep a couple of things in mind; what features does this account have? Will you be cutting lots of cheques a month? Will you be sending numerous EMT’s? What is the cost of cheques, what is the cost of sending EMT’s? Is there a monthly cost to this account? Are there monthly minimum balances you must maintain? What features does this account have? Will you have a knowledgeable account manager to help you reach your financial goals?
I work closely with some pretty awesome business banking managers at various financial institutes, please reach out if you are interested in obtaining their info.
*This is not a paid advertisement, just simply my opinion, as I want to make sure my clients have the most accurate information to make the right decisions for their business.