Miranda Marquit is the author of Planting Money Seeds, a website dedicated to helping people grow their wealth. We talked to Miranda about tips for small business to find the right bank.
The Great Recession saw an unprecedented rise in entrepreneurship - a silver lining to what was otherwise a bleak economic era. Skyrocketing unemployment, rampant layoffs, and a lack of traditional employment opportunities forced many who would have otherwise been reluctant to go into business for themselves.
Owning a small business is a dream for many of us. Although it might be a while before we can afford to vacation on white sandy beaches, owning a small business is rewarding in its own right.
Now that the Great Recession is becoming a distant memory, many of the small businesses founded during that time are becoming established companies, requiring the same business tools as any Fortune 500 company.
Small business owners need to cut overhead, construct solid business plans, and keep track of their money. They also need adequate banking solutions to help their business really flourish into what it could be.
You've stated, "One of the most important things you can do for your home business is to keep it separate from your personal expenses." Why is this so important? What are some of the risks of not having a separate business account?
Keeping everything separate makes it easier for record-keeping and tax purposes. You want to make sure that everything as accurate as possible, in case the IRS needs more information. It also separates liability. This is especially important if you have a separate business entity, like an LLC or corporation. Separating everything can limit your liability to some degree.
You've also recommended doing some homework before starting a business bank account. What are some questions people should be asking themselves for finding the right bank?
Some of the things to consider should include: