Separating one’s business finance from personal finance can be sometimes difficult, especially for small business owners. The reason for this is not far-fetched as some business owners are still trying to find stability.
As a business owner, it is important your business has more than one bank account because depending on your financial goals as a business owner, opening more than one account can help you stay on top of your business’s finances and help you stay more organised.
Also, having more than one business account lends more credibility to your company, offers extra incentives, and can also protect your finances.
You can open a number of bank accounts for your business based on the different purposes they are meant to serve.
Discussed in this article are 3 bank accounts every business should have.
1. Payment/transactions account
As a business owner there will always be a need for you to make payments for goods and services and also have clients make payments into the business for services rendered. It is important you create a specific bank account for this purpose alone.
Such that whenever you need to work on payments or other transactions in the business, you know you only have to focus on this bank account.
Using a single bank account for all of your business transactions and financing is not really advisable as doing this will only aid the lack of organisation of your business.
It will also make financial recording difficult since it will take you long hours and energy to distinguish between credit transactions, debit transactions and others.
To help you keep a tab of your transactions and maintain a good organisation of your financial transactions, it is important every business have a payment/transactions account.
You should visit your financial institution to know which type of account will work best for this purpose.
2. Savings account
A business without a savings account will in no time head for the ditch. As a business owner, one of the important accounts your business should have is a savings account.
We all are into one business or the other for the purpose of making a profit. So, how do you intend on keeping track of the profit you are making in your business without a savings account?
Opening a savings account for your business helps you to avoid mismanagement of your finance. A savings account helps inculcate financial discipline in you as a business owner since it will be known to you and your bank that that bank account is only meant for savings and nothing more.
Thus, you will be able to resist the urge to tamper with your savings or divert the saved amount for other use.
The level of savings you’re able to accumulate over time shows the level of your business performance. To keep a tab on your business performance and growth, keep a savings account.
3. Investment account
We oftentimes start a business with an end in mind. For some individuals, their business is not just meant to provide them with a source of livelihood, it is also meant to raise funds for an investment plan.
As a business owner, it is always advisable you have investment plans other than your business. This helps you to be financially secure and guarantees your financial stability in a country such as ours which is currently facing an economic downturn.
An investment bank account is the last account in this article that your business should have.
You don’t want to eat with your ten fingers or gather all your eggs in one basket, so, invest.
You can look for viable investments such as real estate, buying shares and others, make your due diligence and invest.
It wouldn’t be a bad idea if you have more streams of income or would it?
In all, there are different bank accounts in Nigerian financial institutions and it is best you speak to your financial advisor to know which of the bank accounts will be suitable for your transactions, savings and investments accounts.