Let’s learn today about the benefits of a business bank account. If you haven’t read our previous blog, “Steps after
incorporating a business in Canada”? we suggest you read it first to better understand business bank accounts.
Besides, talk to one of our experts to get free consultations about personal taxes, business taxes, bookkeeping, and many more. We are one of the few accounting companies in Ontario, Canada, that let you
pay less and save more through taxes.
Why Business Bank Account is required?
Why should you open a
business bank account as an entrepreneur? Would you like to guess? Let BG Accounting and Business Solutions drive you through the importance of a business bank account.
1. Managing Finances
If you are an entrepreneur, the first thing would be to manage your business finances. But a
sole proprietor is not legally bound to create a separate business bank account. Having a business bank account can bring peace of mind knowing that your business transactions are always easy to track and completely separate from your personal account.
Remember that newly developed corporations should have a new bank account under an established corporate name. If you lack a business bank account, corporations cannot receive money from third-party and customers as they won’t be able to make out a check or make payments to your new business.
2. Track Income & Expenses
It is also vital to track your income and expenses to reflect your business growth, keep accurate books, and make it easier to file your taxes when tax time rolls around. Any fees that come with the business bank account can be deducted as a business expense.
PRO TIP: Get in touch with our mainstream accountants at BG Accounting and Business Solutions to keep your hard-earned money in your pockets as the next tax season is around the corner.
3. Better Growth Chances
A separate business bank account will help you to grow your business with unprecedented ease and offer services that best fit your business. For example, you can pay the vendors directly from your account, get access to products created for business, and makes your business journey much easier to proceed.
4. Organized Filing & Records
Opening a business bank account can save time by streamlining business financial records and tax information. For e.g, finding deductions are much easier as you don’t have to search through every single item in your bank statements.
5. Business Credibility
If you are operating through a business bank account, can assure your clients that your business is legitimate. It’s also possible that your business may be audited for tax purposes. But when you start mixing your personal and business banking, it will prove difficult for you, your
bookkeeper, and your accountant to extract that financial data, especially if the
CRA chooses to audit your business.
6. Business Credits
As your business grows, you may look for a business credit card, credit line, or business loan. Having an established business bank account will improve your chances of getting credit approval when the time comes. Your approval won’t hinge on your personal credit rating alone. In the case of a business loan, you’ll need to set up a separate business bank account in any affair.
Conclusive Thoughts
As you see, there are multiple benefits of having a business bank account for a new business. BG Accounting and Business Solutions will help you do that as we ideally match every business in Ontario, Canada.
Moreover, talk to one of our experts to best manage your tax and accounting keepings and take your business to the next level.
Keep intact with
BG Accounting and Business as the tax season is almost on the face of businesses in Ontario. We make sure to provide you with the best-suited tax and business solutions through our result-driven professionals.
