It is very important to have separate account for business and personal needs. In case if you run a small business all by yourself you should maintain separate accounting system for dealing with your business needs and personal things. Proprietors of small business always run out of time and they don’t have time to sort out things leisurely. It is easy for you if you have two bank accounts separately as business accounting and personal accounts. By maintaining two accounts you can easily manage finances and keep records of the business. It is possible to monitor the funds by going through the statement which clearly tells you how many checks were issued this week and what are the amounts credited. You can view almost each transaction of finance in your bank account. It also helps you to plan your budget and allot funds for future investment.
Business checking account is one in which all the transaction of checks are made. You issue checks to various agents and third parties and suppliers for smooth running of your business. You have to issue checks from the business checking account towards payment of raw material and goods necessary for running your business. It is possible to withdraw cash at any ATM service point and you can also deposit funds at any branches now.
Now banking is made easier by electronic money transfer and safe internet banking. Moreover, you can make various financial transactions using your checking account. Some banks do not impose restriction on the number of checks to be issued each month while some other banks fix a limit for issuing checks. Again there are differences between banks which ask you to maintain minimum account balance. You need to have a proof of your business and personal identification for opening a checking account.
The savings account of your business is the place where all the funds are deposited. Your business will gain constant rate of interest deepening on the amount deposited in the account. Usually savings accounts are not connected with debit cards and also check books. You can either take the money through ATM credit card or visit the nearest branch personally for making transaction.
You can comfortably deposit all the profits the business makes in the savings account. All the affairs of the company and payment for employees are done only by checking account. In some companies employees use the credit card for proceeding on official tours. Business accounting is very much essential for managing the financial transaction of the company effectively.
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