If you are a small business owner, you might be running your business from a personal bank account. You also might be asking yourself, “Should I use a business account or a personal account?” In this week’s YouTube video, we talk about the differences between the two and if/when you should make the switch from personal to business.
Business and personal accounts are actually not all that different from one another. The main difference is that with a business account, you can accept cheques/payment in your business name instead of in your personal name. As cheques are not used as widely today, this may or may not be an issue for you.
However, business accounts do tend to have more fees than a regular personal account. Therefore, unless you really need to accept payment in the business name, it may not be worth it for you when you’re getting started. Saving money each month in fees can quickly add up when you are running a small business. You also would need a business account to connect certain payment methods, such as credit card machines, for example. However, you could also use a service like Stripe, which will allow you to collect payment using any type of account.
We go over the pros and cons of business and personal accounts in more detail in this week’s video! Check it out at the link below and give it a like if you find it helpful! Also, don’t forget to subscribe to our channel for weekly videos with tax tips, financial information and more!