Basic Banking and Credit

A bank checking account, especially one designed for small businesses, serves many purposes. It gives you a simple way to pay bills, get cash, deposit payments you receive and cash checks. This kind of account also provides basic recordkeeping, since your statement shows amounts you’ve paid and to whom, as well as amounts that you’ve deposited.

In addition, you’ll be able to view your account status online at any time, receive wire transfers and electronic deposits — which is important if your business accepts credit cards — and transfer funds electronically between your checking and other bank accounts, such as savings and money market.

In addition to a business bank account, you might consider getting a company credit or charge card, since it provides a convenient way to pay for supplies and services for your business, especially if you don’t have the cash on hand. What’s more, you don’t have to pay for the things you charge until the credit card bill comes due, so you can use your cash for other things in the meantime. Further, keeping your business expenses on a business credit card can assist in tax preparation, as you need to keep such expenses separate from your personal expenses.