The Benefits of a Business Bank Account
News Talk
Sponsored by BMOLearn more about business bank accounts – including the best time to open one and how to get started.A business bank account can be a gamechanger for your business finances. Opening a bank account for your business is a simple, inexpensive way to streamline and track your business transactions.The benefits of opening a business bank accountWhile it might seem easier to keep using your personal bank account for your business transactions, there are plenty of good reasons to open an account that’s used exclusively for your business.Keep better bookkeeping recordsWhen tax time arrives, you’ll be required to report your business income and file a return. If all of your transactions (both business and personal) are being made from one bank account, it can be difficult to sort through transactions to calculate your total business income and expenses. You might end up misreporting your business activities to the government, which can result in major consequences.It takes time to build a business and many entrepreneurs claim a loss during the first few years on their income tax return. However, the government may disallow these tax losses if they believe you are pursuing a hobby instead of a business.The (IRS) audits...
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