Business Bank Account
A business bank account is a non-negotiable requirement when borrowing from us, for any business regardless of size, type, or area of operation. Whether you have a home-based, online, or brick and mortar business in whichever sector, a business account is mandatory to get funding from us.
You will NEVER get any startup and/or business funding from us if you don't have a business bank account for your registered business.
A business account can offer numerous benefits. These include:
• Financial identification
A business account offers your company financial identification and representation. Your business is acknowledged as an entity with a financial base. A business account is among the most obvious proof of your business's existence.
Also, it adds legitimacy to your business. Suppliers would love to deal with a company with a bank account as it shows stability and good faith. Customers too, especially those who buy online, will trust your business more if it has a bank account.
• Maintaining professionalism
When you are in business‚ a startup or an established firm—image is everything. When you write a cheque or use other payment methods and your personal name appears, it doesn't help your image. Instead, it conveys a message that your business is a few weeks old.
Having a business account gives your firm a professional appearance and image. When you write a cheque to your suppliers, they see it's coming from a business. The same applies to your customers; they make payments to your business account, not your personal account, which improves the image of your business. Some customers are reluctant to make payments through a personal account, and hence, a business one becomes handy.
• Organise Financial Records
Imagine if you mix personal with business finances and it's time to file income tax. How do you determine the monies that are personal and those that belong to your business? It will be a mess that no accountant wants to handle.
However, when you have a business account, you have a clean and accurate record to offer your accountant when income tax time comes. You have a leg up when dealing with GRA.
Additionally, a business account helps you to determine trends in business—peak and off-peak seasons—and monitor business profitability.
For example, by examining your business account for the past month, you can determine the profitability of your business. If your business earned GHS7,000 and spent GHS2,000 on expenses, your net profit is GHS7,000 - GHS2,000 = GHS5,000.
• Legal reasons
A business bank account guards you against legal issues in the event of problems. When a problem arises in your business, your business account will be examined by relevant authorities.
If you merge your personal and business account, in the event of an issue, your personal finances are affected. A business account protects your personal funds in conflicting situations.
• Finances management
The primary purpose of a business account is to handle business transactions and related expenses. It helps you manage your business finances and allocate money for different ventures.
With a business account, you can quickly and conveniently cater for expenses such as bills and employee salaries. For instance, if you want to pay a bill, you just write a check, and the amount is debited in your account.
Such convenience is incomparable to reimbursing employees for spending on your business expenses.
• Separating personal and business finances
Many people make the mistake of marrying their personal finances and business finances.
They assume that by keeping separate records, they can determine the monies for business and those for personal use. However, in most cases, it does not work, and they end up using business funds for personal expenses, which can be a big blow for any business.
It is best practice to keep personal finances and business finances physically separate in different bank accounts. A business account provides the ability to separate your personal finances from the business ones. Some business owners make a step further to use different banks for business and personal banking to ascertain separation.
• Establishing a business banking relationship
A business account can help you develop a good relationship with your bank to drive business growth. A business banking relationship may assist you to obtain financing with better terms to expand your business.
You may want a loan to purchase equipment, increase inventory, or buy assets. A good business relationship with your bank makes it easier to obtain other commercial banking products like business credit cards and overdrafts.
You will NEVER get any startup and/or business funding from us if you don't have a business bank account for your registered business.
A business account can offer numerous benefits. These include:
• Financial identification
A business account offers your company financial identification and representation. Your business is acknowledged as an entity with a financial base. A business account is among the most obvious proof of your business's existence.
Also, it adds legitimacy to your business. Suppliers would love to deal with a company with a bank account as it shows stability and good faith. Customers too, especially those who buy online, will trust your business more if it has a bank account.
• Maintaining professionalism
When you are in business‚ a startup or an established firm—image is everything. When you write a cheque or use other payment methods and your personal name appears, it doesn't help your image. Instead, it conveys a message that your business is a few weeks old.
Having a business account gives your firm a professional appearance and image. When you write a cheque to your suppliers, they see it's coming from a business. The same applies to your customers; they make payments to your business account, not your personal account, which improves the image of your business. Some customers are reluctant to make payments through a personal account, and hence, a business one becomes handy.
• Organise Financial Records
Imagine if you mix personal with business finances and it's time to file income tax. How do you determine the monies that are personal and those that belong to your business? It will be a mess that no accountant wants to handle.
However, when you have a business account, you have a clean and accurate record to offer your accountant when income tax time comes. You have a leg up when dealing with GRA.
Additionally, a business account helps you to determine trends in business—peak and off-peak seasons—and monitor business profitability.
For example, by examining your business account for the past month, you can determine the profitability of your business. If your business earned GHS7,000 and spent GHS2,000 on expenses, your net profit is GHS7,000 - GHS2,000 = GHS5,000.
• Legal reasons
A business bank account guards you against legal issues in the event of problems. When a problem arises in your business, your business account will be examined by relevant authorities.
If you merge your personal and business account, in the event of an issue, your personal finances are affected. A business account protects your personal funds in conflicting situations.
• Finances management
The primary purpose of a business account is to handle business transactions and related expenses. It helps you manage your business finances and allocate money for different ventures.
With a business account, you can quickly and conveniently cater for expenses such as bills and employee salaries. For instance, if you want to pay a bill, you just write a check, and the amount is debited in your account.
Such convenience is incomparable to reimbursing employees for spending on your business expenses.
• Separating personal and business finances
Many people make the mistake of marrying their personal finances and business finances.
They assume that by keeping separate records, they can determine the monies for business and those for personal use. However, in most cases, it does not work, and they end up using business funds for personal expenses, which can be a big blow for any business.
It is best practice to keep personal finances and business finances physically separate in different bank accounts. A business account provides the ability to separate your personal finances from the business ones. Some business owners make a step further to use different banks for business and personal banking to ascertain separation.
• Establishing a business banking relationship
A business account can help you develop a good relationship with your bank to drive business growth. A business banking relationship may assist you to obtain financing with better terms to expand your business.
You may want a loan to purchase equipment, increase inventory, or buy assets. A good business relationship with your bank makes it easier to obtain other commercial banking products like business credit cards and overdrafts.