Dictionary of all accounting terms
A business bank account is an account that helps the business owner keep business transactions separate from personal finances, and usually comes with special conditions for businesses.
The advantages of getting a separate bank account for your business are clear to see. This helps business owners track their expenses, mange cash flow, and make it easier to calculate tax liabilities.
Business bank accounts are different to private or personal bank accounts as they are made specifically for businesses.
When choosing the best business bank account for your company, it is recommended that you look for one that offers low charges and good interest rates.
It largely depends on what the normal business operations are. For example, if you expect to primarily make payments electronically, the best business bank account would offer low-cost or free electronic transactions.
On the other hand, if your business involves using primarily checks, you should look for lower charges for paper transactions.
Many banks have great resources for small businesses, such as advice teams, helplines, and other benefits for businesses opening bank accounts with them.