Opening a separate checking account for your business can significantly improve how you manage work-related expenses and recordkeeping. By separating your business and personal funds, you can make it easier to complete your tax return and avoid costly tax mistakes.
Why You Need Accurate Records
Even if you work from home, keeping your business and personal finances separate is key to good bookkeeping and effective tax planning. An important first step is to organize and separate your business and personal receipts. Documenting all your business expenses is vital when reporting income and claiming tax deductions. If you are audited by the IRS, you’ll need these documents to prove the accuracy of your return.
Why You Need a Separate Business Account
If your business is structured as a corporation, you’re required to keep the business’ funds separate from your own. Make sure you have a separate checking account with your business listed as the account holder. If your business is a sole proprietorship, you’re not required to maintain financial separation. Still, opening a business checking account is a good idea because it makes it easier to identify nondeductible personal spending and tax-deductible business expenses.
Opening a Business Checking Account
To find the business checking account that’s right for you, estimate your future revenue and expenses, as well as monthly transaction volume. Sun National Bank offers two options tailored to the needs of growing businesses:
Consider adding a Debit MasterCard BusinessCard® to your Sun National Bank business checking account to help make purchases and recordkeeping more convenient.
Choosing the Right Bank
When you need a business checking account, consider a bank that understands your unique business needs. At Sun National Bank, we know that growing businesses have changing requirements. That’s why we offer a wide array of services to support your operations and growth, including business loans, cash management tools, card services, and powerful merchant services. Do you have questions about business checking or other solutions for your business? Our full range of products and services can help.