The Three Bank Accounts Every Business Needs
Owning a business of any size comes with what feels like a laundry list of considerations.
There are so many different moving parts that require all of your staff’s attention. In this case, it helps to have dependable, efficient resources that make life easier for all parties involved. Here are the top three bank accounts that every business needs for success.
How Business Checking Accounts Help to Manage Transactions
Your Business Checking account is a wonderful tool that can help simplify tracking your day to day transactions.
Take Accounts Payable, or AP, for example. In business, your company is often able to solicit services without having to pay for them upfront. You’ll be given a certain period of time to make good on the payments, lessening the burden of having to produce the funds on the spot.
The status of these transactions are tracked via AR, which a good business checking account helps to automate. On the other hand, let’s say someone is soliciting you for services. Again, you’re likely to not require them to make payments upfront. Instead, they’ll also be given a grace period to pay, which you can track using the AP, or Accounts Payable feature of your Business Checking account.
Using Your Savings Account(s) Correctly
Your Business Savings Account can also be a great resource to help manage financial burdens more easily. We recommend having two separate savings accounts. The first you can use to store reserve funds in the event that you need to access quick cash independent of your checking account. Then, use the second business savings account as a means of preparing for tax time. Think ahead to what you’re likely to owe, and start saving now.