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The Benefits of Opening Separate Business Checking Accounts

Organizing cash flow, setting up bill payments, and accurately calculating cash on hand are critical functions for any business. A recent study reports that 27% of small businesses use the same bank account for business and personal finances (check out the infographic here). For business owners and self-employed workers, it might be beneficial to not only separate these accounts but to have more than one business checking account.

The Benefits of Business Checking Accounts

Credibility

A business checking account can help establish a business’s identity and build credibility with customers and creditors. Multiple bank accounts show customers and vendors that your business is trustworthy and secure. It can also give you a better banking reputation and help you obtain further funding down the road.

Separate Business from Personal

The main reason business owners elect to open multiple bank accounts is to separate different expenses, payments, and deposits. This keeps their personal expenses separate from their business. Come tax season, you’ll find that your expenses are much more organized and easier to manage.

Organize your Business Expenses

Separate accounts allow you to differentiate the operating costs of your business, such as payroll services and business-related taxes. Many functions that help a business operate are often included in these accounts, like payroll services, online banking, and business loans.

Business owners also have the option to grant employees or affiliated professionals (CPA, bookkeeper) access to their business checking accounts. This can be limited to only making deposits or you can issue ATM or debit cards so that the employees can pay business expenses directly through the business account.

Are There Downsides to Business Checking Accounts?

The main downside to multiple checking accounts or business accounts is that you, someone on your team, or perhaps an accountant must pay close attention to them. Added accounts mean added management.

At certain banks, this might also mean added management fees and minimum balances to maintain. Business banking accounts are commonly expected to hold a somewhat high minimum balance and may be charged fees.

Not at Falcon National Bank. Our Business Plus Checking includes:

  • No minimum balance
  • No hidden fees
  • Online banking/mobile banking
  • Debit card available
  • eStatements Available
  • Monthly statements with check images
  • Bill pay/cash management/merchant source capture available

Not sure if our Business Checking Plus account is the right solution for your business? This is just one of our business banking options. Visit our website or contact a helpful representative to learn more.

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