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HOW MANY BANK ACCOUNTS DOES YOUR BUSINESS NEED?

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If you have your own business, whether you like it or not, there is an added layer of complexity to your personal finances.

Keeping separate bank accounts can help keep your business finances organised — which is important with a complex situation!

Here are a few suggestions on what bank accounts you need and why for your business.

CURRENT ACCOUNT FOR OPERATIONS

Your current account for operations is like the hub of your business’s financial web. All earnings should flow into this account, and you should use it to pay expenses and credit cards.

ACCOUNT FOR TAXES

Business owners are responsible for paying their own taxes throughout the year.

SAVINGS ACCOUNT FOR YOUR GOALS

Set a business goal for yourself by looking at the total cost of what you want to accomplish.

ACCOUNT FOR EMERGENCY

You likely keep a cash reserve set aside to cover big, unexpected expenses in your personal saving.

OPTIONAL “FLEXIBLE SPENDING” ACCOUNT

Those four accounts above should serve your business well. But you can use other accounts too, especially if you want to earmark money for specific purposes.

Postrendy advice you to Keep your business bank accounts organised and manageable, If you want the money available for opportunities as they arise, consider opening a separate savings account and making a small monthly contribution to it.

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