Opening a business bank account can be a bit of a hassle. First you need to gather up your business documents (yes, paper documents) and then physically get up and go to the bank to have a face-to-face conversation. Sooo 90’s right?
There’s no doubt that it’s easier to keep personal and biz finances consolidated within a single account, but this could be costing you in the long term.
Here are 3 reasons it’s worth setting aside an afternoon to visit your local bank.
1. Look Professional to Your Clients
If you’re using FreshBooks to send invoices, you’re already well on your way to looking like a pro. The last thing you want is to lose your client’s confidence by asking them to make a cheque out to you personally. There’s something about that experience that makes a client feel like they’re not dealing with a ‘serious’ business. Having a business bank account means you can proudly ask clients to make cheques out to the same professional business name that appears on their invoices.
2. Save Time Sorting Expenses
Tracking and categorizing business expenses doesn’t make the top of most people’s “super fun stuff list”, but it’s one of those necessary evils. Automatically importing expenses into your FreshBooks account is an easy way to simplify the process, but if you’re personal expenses are up in the mix, you’re creating more work for yourself. Having to review each imported transaction so you can remove your daily coffees and shopping trips, translates into hours of valuable time and increases the room for error. Using a dedicated business bank account takes the guesswork out of the equation and gives you back the most precious gift of all –time.
3. Feel Confident at Tax Time
If you’ve gone through your first tax time as a small biz owner, you know it can be stressful and somewhat scary. You want to make sure you meet all the CRA’s requirements and avoid the dreaded audit at all costs. Small biz owners are not legally required to use business bank accounts, however business expenses that are paid out of personal accounts can appear more questionable. Using a business bank account can help validate that you have a registered business and that the expenses you’re claiming are legitimate. And who doesn’t want to be on the CRA’s nice list?
Need a business bank account?
Thanks to our partnership with BMO, you can cash in on an offer exclusive to FreshBooks customers. Get all the banking essentials you need by opening one of BMO’s Small Biz Plans and your first six months are totally free. Book an appointment or drop by your nearest BMO branch and bring a copy of the email to get set up and start reaping the benefits.