Why Business Checking Accounts Equal Growth

Small business owners wear many hats—including the green visor that normally belongs to the company bookkeeper. While it’s smart to ensure all aspects of the business are running smoothly, tackling everything, including the company’s finances, creates some challenges.

Utilizing a business checking account can help. It’s valuable for businesses of all sizes from sole proprietors to big corporations, helps save money and time and adds up to financial protection for the business owner. Here’s why: 

Growth pathway
As businesses grow, having a solid relationship with a financial institution can make borrowing money simpler. The initial seed for that relationship is a business account, which in the long-term, can also provide a clear picture of the business’s financial practices.

New revenue streams
Don Youngberg, AVP of business services with Mountain America Credit Union says, “The right partnership can help you earn more money. For example, a small shop or artisan may accept cash and checks only, but with a merchant account, that same business may be able to process debit and/or credit card sales, too. This flexibility can open up new revenue streams, which is essential for growth.”

Increased legal protections
Tax research analyst Jennifer Rempe told Bankrate.com that incorporated businesses shouldn’t use an owner’s personal account for business purposes. Doing so, means creditors—including the IRS—can pursue the owner’s personal assets to collect outstanding business debts. On the other hand, business checking accounts help protect both the owner and the business. If accounts are separate, financial actions of the business will remain separate from those of the owner, so legal action doesn’t harm both.

Customize business benefits
Business checking accounts aren’t one-size-fits all. Says Youngberg, “We recommend accounts based on the business’s current state and future goals. One of the accounts we offer is basic but includes key business features like bill pay, direct deposits for employees and a debit card. However, we might encourage a growing business to look at an account that offers dividends or the option to earn credits instead. It really depends on what the company hopes to achieve.”
 
Learn how the Mountain America Business Services Team can help you optimize your business and save you time and money. Schedule an appointment today!