If you have a small business or a side hustle, you almost certainly have costs that can be deducted from your taxes. You should also maintain a bank account for your business if you have tax-deductible expenses.
Having a separate company bank account simplifies accounting, makes you appear more professional and protects you from a tax audit or litigation. To make an e-banking account registration Malaysia, check out HongLeong Bank.
It’s just a good idea to keep your company and personal costs separate.
When you first establish a business, it may appear that using your personal credit card or checking account to do business transactions is the most convenient option (especially if they are few and far between).
It’s easier to operate your company if you have a separate business account. You may keep track of receipts and write checks for costs in the account. That will be a lot easier to maintain than trying to do everything through a personal account.
It’s more professional to have a business bank account.
When it comes to business, image is everything. It won’t help your image if you’re writing cheques from a personal account. It will give the impression that you are only sort of in business, or even worse, that you have only been in business for a few weeks. That image doesn’t exactly scream “strength” or “trustworthiness” in the eyes of customers and clients.
A specialised business account, on the other hand, signals that you’re ready to take on new clients. Your company name shows on checks and other forms of payment, giving clients and consumers the impression that you’re serious about doing business.
Your personal identity can be protected by having a separate bank account.
Since your company account will be used for a significant number of transactions, the risk of fraud or identity theft will be higher. You can limit the damage to just your business account if you have one.
Establishing an employment ID number (EIN), which you can do quickly with the IRS, will make your company bank account even more effective. You can use that number instead of your Social Security number to open a bank account, preventing potential thief access to your whole financial life.
A connection with a business bank can be beneficial in the future.
A commercial relationship with your bank will become more vital as your company expands. You could wish to set up a separate account to pay income, sales, or payroll taxes, for example. Establishing a credit relationship is also a good idea. Obtaining bank credit to purchase equipment or develop your firm is one example of this.
A company credit card is almost probably something you’ll desire, especially if you have employees or partners for whom you’d like to issue one. All of this will be easier to get if you have a specific business banking arrangement.
You can take credit card payments using a business bank account.
This may be the most important reason for you to get a business bank account. Since credit cards are accepted all across the world, you’ll need to start accepting them as your company grows.
Credit cards cannot be accepted through a personal bank account. Only a business account allows this to happen. These accounts are created only for the purpose of accepting credit cards. They can make the credit card transaction go as smoothly as possible, which is just what you’ll need.