What is a business account? A business account simply put is a bank account that is meant for only business transactions. A business account is one that is limited to only transactions that involve your business. It is a separate account that has nothing to do with your personal income and expenses.
Some may argue that having a business account is not necessary especially if the business is sole proprietorship. After all,it's your business,your money. Why do you need a business account? What are the benefits of keeping your business finance separate from your personal finances?
The need for a business account
Consider the following reasons why you should get a business account
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A business account makes you look professional and serious about your business. A business account would normally carry the name of your business when customers and partners have to perform transactions and see your business name pop up, they are more likely to take you seriously. This also gives credibility to your business. See how you can come up with a great name for your business. https://smartsmssolutions.com/blog
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Makes it easier to pay tax and conduct audits. When it comes to payment of taxes and audits, having a business account would save you a whole lot of stress. In a situation where your personal and business finances are mixed up in one bank account, it will take a lot of time and manpower to sort what is personal from what is business.
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A business account makes you more eligible for loans. If you at one point in time or the other have to apply for a business loan,you are more likely to get such a loan if you have a business account. This is because your business account would provide all the information your lenders would need about the history of your business finance and enable them to determine that you are creditworthy. With loans, having a business account also means that if your business is unable to pay for any loan,you cannot be personally held responsible. What that means is that your creditor cannot come after your personal assets.
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Easy access to funds. The terms, conditions and limitations for operating a personal account differs from that of a business account. A personal account would have more limitations than a business account and this would limit the kind or number of transactions that you can perform. Without a business account, your transactions would be limited and this would result in your loss as you may end up not meeting up with targets and disappointing clients and partners.
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A business account makes it easier to sell your business if/when you want to. A prospective buyer would want to see the history of the enterprise he wants to buy into. This is only possible when you have a dedicated business account. Here are guidelines to follow if you ever need to get out of business.
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A business account makes it easy to track your funds and expenses.
How to get a business account in Nigeria.
It is quite easy to open a business account. Every commercial and microfinance bank offers such services. It is up to you to find out which bank offers the kind of service that suits your business needs. Here are a couple of things you should look out for before you decide on a bank.
https://www.forbes.com/advisor/banking/checking/how-to-choose-a-business-checking-account/
Standard IBTC for instance offers purchase order discounting, domiciliary account, value access, mobility etc
First Bank on the other hand offers business accounts designed for small, medium and large scale businesses and such businesses are allowed to carry out transactions at a predetermined fee. These are just two of the numerous commercial banks you could use in Nigeria. Look up these banks and choose the one that appeals to you the most.
https://nigerianfinder.com/best-banks-for-business-accounts-in-nigeria/
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