Business Banking

The complete guide to business banking

Your business bank account operates a bit differently than your personal checking account. Get the complete guide to business banking here.

Tim Wu
Tim Wu

Head of Growth

Table of Contents

Are you one of the 25 million people living in the United States that is an entrepreneur? Are you a business owner who is looking to get better control of your finances?

If you answered "yes" to any of these questions, you should consider opening a business bank account. While your business' income can technically be stored in your personal account, we believe that it is much better to separate your personal finances and your business' finances.

To learn more about what business banking is and how you can get started with your very own business banking account, keep reading.

What Is Business Banking?

The process of business banking allows banking professionals to help business professionals. By offering a variety of banking and financial services, banking professionals can help business professionals store their funds, open a business account, apply for business loans, and more.

Business banking is a great choice for any entrepreneur who is looking to get financial guidance through any financial situation.

What Can I Get from Business Banking?

Business banking is a blanket of protection over business finances. Because you're working with financial professionals, you're going to be able to keep track of your financial health and get a better picture of your true wealth.

Plus, business banking is designed to keep all of your business' assets safe while offering great benefits that regular accounts can't give you.

We highly recommend that you separate your business finances and your personal finances for multiple reasons:

  • It protects your personal assets
  • You can take advantage of business banking benefits
  • It prevents you from taking too much of the business' money
  • It prevents you from spending too much personal money on the business

What Can I Get With a Business Bank Account?

A business bank account comes with a lot of benefits that you're going to want to take advantage of.

Let's walk through some of the most popular benefits and see how a business account could help you.

Track Cash Flow

Just like any other account, a business account allows you to track your business' cash flow. However, there is much more that comes with separating your accounts by having a business account.

First of all, separating your finances allows you to look at your personal finances separate from your business finances. This allows you to examine business cash flow without the pain of having to separate it from your personal expenses.

Plus, business bank accounts offer the option of viewing cash flow in different ways. Because banking providers understand that business owners are looking to optimize their finances, they offer different ways of looking at business finances.

Save Money Through Deductions

If you've ever had a combined personal and business bank account, you understand how difficult it is to separate business deductions from your everyday purchases. By having a separate business bank account, you can prevent the need to do this.

You don't have to sift through every single purchase you made the year before as long as you have a separate business bank account. By simply looking through your expenses, you can pull deductions that can apply to your business' taxes.

Apply for Business Loans

Business banking providers allow those who have business accounts to have access to business loans. This means that you'll be able to access extra money that your business may need in the future.

Some business banking providers have special offers on business loans for their clients. You may be able to get a great interest rate or a special financing option. Be sure to ask your potential banking provider about what kinds of offers their members get.

Access ACH Payments

By having a business bank account, you'll be able to access the automated clearing house (ACH). The ACH is a network that manages money transfers and electronic payments from person to person.

Having access to ACH payments means having access to a more convenient way for you to collect money from customers. Plus, it's an easier way for you to pay any vendors that you may employ over the years.

Protect Customers

Through a business bank account, you'll be given multiple protective measures to help you conceal customer identities. This protects any customer that makes a transaction with your business.

Protecting your customers' identities is important to them, so it should be important to you. If you have a business bank account, you can let your customers know that their information is being protected by merchant services.

Make Payments Officially

Whether you're looking to have your own business debit card or a checkbook that's officially for your business, business bank accounts can help you. Most business accounts give these things to their customers or allow them to invest in them easily.

Think about how official it will feel to sign your first business check or swipe your business debit card. By creating this kind of professional environment, you're showing your clients that you're investing in your business and taking the time to show off your professionalism.

Transfer Money When Needed

If you do happen to come by a situation when you need money quickly, fast transfers from your business account can save you. Whether you need the money for a business expense or a personal one, you can take advantage of the money you've earned without being penalized.

Just make sure that you're careful with how often you use this tactic. It's completely understandable to use the money that you've earned. However, you don't want to constantly remove money from your business bank account (unless you're a Sole Proprieter who does this normally).

Business Banking Provider

After learning about business banking and hearing about all of these great business banking benefits, we're sure that you're excited to get your account started as soon as possible.

At Nearside, our Business Checking Account was designed with small businesses in mind. With no monthly fees, no minimum deposit, and exclusive cashback rewards, you can save money and run your business more efficiently.

Keep reading…

Ready to take the next step?

Join our community of small business owners and get a seamless online banking experience that gives you cash back with no monthly fee.