Can I Use My Personal Bank Account for Business?
Using a Personal Account for Business: Is It Possible?
It is one of the first questions that comes to mind when starting a new business or a freelance career. Both of the latter can be exciting, but also overwhelming, which means that before making decisions you should be 100% informed on the possible consequences. When it comes to using a personal bank account for business purposes, there’s no single answer. Unless it is prohibited by your legislation, you can avoid opening a dedicated business bank account, but will this benefit you and your company or career?
A business bank account is a product tailored specifically to corporate processes and procedures: customer payment processing, expenses, accounting, bookkeeping, taxes, loans, and more. Managing all of the latter becomes a tough task when the financial tool you’re using doesn’t deliver the necessary functions & interface, as in the case of a personal bank account. For this reason, our answer to the big question of whether it is possible to use your personal account for business is a loud and clear “no”.
A business bank account like the one offered by Satchel, will simplify the management of corporate financial operations, streamlining customer payments and corporate expenses. Therefore, even if you’re not required by law to open a business account, we strongly suggest you consider doing so. Keep reading to find out why.
What Are the Most Common Business Expenses?
Business expenses refer to the costs associated with running a company. Depending on the size and scale of a business, it will require continuous financial investments in order to run effectively and grow. The data on business costs is also used by accountants and financial professionals to create financial projections, adjust company budgets, and deliver income statements. Understanding the expenses your business must accrue will also help you define which type of bank account will suit you best and what functionality it needs to have in order to help you manage corporate finances with ease.
Here are some of the most common business expenses:
- Location (rent, lease, or mortgage)
- Utilities (heat, water, gas, electricity)
- Phone plan & Internet
- Business insurance
- Office equipment
- Staff salaries
- Materials for the production of goods
- Marketing expenses
- Legal fees
Why Is Opening a Business Account a Good Idea?
Keeping personal and corporate transactions separate is a smart way to handle business’s financial records, avoid confusion and limitations, and leverage on the specialized tools provided by banking institutions.
A business bank account comes with essential features that will allow you to improve customer service through simple and fast payment processing, as well as cover corporate expenses, execute money transfers, pay salaries to the employees, and use payment cards. A dedicated corporate account will help you:
- Maintain a clear track record of your cash flow
- Adjust your budget allocation depending on the factual spending data
- Monitor the financial health of your business
- Get a business loan, line of credit, or a credit card
In short, even if you are not legally required to open a business account, it is always great to consider this option, as it can truly simplify corporate finances management. At Satchel, we offer business accounts that come with various tools and services for business owners and managers who make multiple transactions on a daily basis. You can choose the tariff that suits you best depending on your needs, and open an account remotely by submitting an online form.
Here are some of the key benefits of a Satchel business account:
- Online account opening
- Unique European IBAN
- Transactions in 38 currencies through SWIFT and SEPA
- Personalized customer support
- Intuitive mobile app
- Mastercard payment cards for business expenses
- API integrations
With Satchel you can unlock growth opportunities for your business and enjoy full financial freedom, anytime and anywhere.