Welcome to the yet another entry of our Newton Federal Resource Center. At NF, we offer a range of options when it comes to opening personal and business bank accounts. This inspired us to list a few key differences between the two. When do you need each? Does each have their own separate requirements?
All of this and more is explored below. We look forward to this being the first of many articles aimed at keeping our customers informed. We’ll be updating these logs weekly, so be sure to check back in for more up to date info!
When To Open A Personal Account
If you’re wondering why you should open a personal bank account, first ask yourself a few questions. Is your money secure outside of a personal account? Are you looking for an automated system to help keep track of your earnings and debits? If the answer is yes, then a personal account is likely for you.
This digital money management tool has also opened up a world of possibilities for the user. It’s among many other conveniences and perks that make a personal account great for protecting and localizing your capital as an individual.
Good Businesses Need Business Bank Accounts
On the other hand, a good business owner knows when it’s time to start an account (and in most cases, it’s from the very start!) There are countless reasons as to why companies will benefit from starting business bank accounts. The first being coverage!
Not only are you ensuring your brand’s earnings, but you’re making a range of future processes easier on yourself. You’ll also be especially grateful once tax time comes. In need of a bank loan? Good luck getting one without a verifiable business bank account. Overall, it helps to set an expectation of legitimacy for your business.
Keeping Your Personal and Business Accounts Apart
Should you merge your personal and business accounts? We would advise against this kind of overlap. For starters, it is much easier to keep a close eye on where your business’s cash is going when it’s relegated to one place.
This helps to keep bookkeeping more accurate, and ultimately will help with future tax needs. There are a range of benefits there as well, including write-offs, deductions, and more. Lastly, this separation can help to dictate your intended audience’s perception of you. Having a legitimate business account can make them take you more seriously; something to keep in mind!
The Final Word With Newton Federal
Are you ready to open up an account of either kind? Newton Federal is here with a list of services guaranteed to get you the help you need. You’ll find that regardless of the effort, we can likely provide assistance.
From business and personal accounts, to loans for either, and much more. Newton Federal has all your bases covered. Have more questions for us? Feel free to reach out at any time. Schedule a consultation with us via our contact page to get a jumpstart today!