Author Topic: When to start a bank account for your business  (Read 475 times)

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Locketay

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When to start a bank account for your business
« on: October 01, 2019, 11:38:34 AM »
Hey y'all,

I'm wondering when you decided to establish a separate bank account for your business. Would you recommend it? What made you finally decide to do it?

Thanks in advance,
Locke
Owner, Latigo Customs, LLC
www.latigocustoms.com
"High Quality Gear, Proudly Made in Richmond, Virginia"

stimpy

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Re: When to start a bank account for your business
« Reply #1 on: October 01, 2019, 01:30:32 PM »
Personally, i did it when i started officially.
It was needed to get a bussinesnumber. But i would recommend to do it as early as possible. It easier to keep track of what you are earning. If you keep private and company expenses/income seperately. And opening a bank account doesn't cost that much money, (at least in my country) i think i pay around 9€/10$ every 3 months

mogensbeck

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Re: When to start a bank account for your business
« Reply #2 on: October 06, 2019, 11:26:05 AM »
Required by law in Denmark to have a company account when you start a company. You don't pay anything, and fees for abroad wire transfers are the same as a private account. The only real difference lay in your interests in case you need to borrow money to invest in machines or overdraft facility. Where you get fucked compared to a private account.

It's a good thing to keep your company economy and the private economy separately. There is a lot of small purchases you don't notice when you buy it privately as a hobby.

WhiskeyTwoFour

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Re: When to start a bank account for your business
« Reply #3 on: October 07, 2019, 12:28:30 PM »
Do it now.  Then buy QuickBooks.  Then learn how to use QuickBooks.  Pay the $10/mo bank fee to download your transactions to QuickBooks.  QuickBooks software is an amazing value.

Accounting for a seven figures business takes 30 minutes or less per day with good accounting practices.  This includes paying bills, invoicing, and incidentals.  For a four, five, or six figures business, it should take less.

Learn good accounting practices now.  There are tons of reputable YouTube QuickBooks tutorials and plenty of QuickBooks experts and training available.  Embrace QuickBooks now.  It will be one less headache when it comes time for expansion. 

When it's time for a loan, you'll have a gorgeous P&L sheet to show off with your (dedicated) bank account statements and highest account balance.  You'll be able to pick up the machine that will change the course of your life.

When it's time to hire a controller or a contract accountant/CPA/law firm, you won't need to pay to unfuck your embarrassing spreadsheet.  As an added bonus, you'll know how to check their work. 

When it's time to do taxes, it will take only a few clicks as you already made your QEP on time and on target based on projections from good accounting practices.

When it's time to buy a building, the commerical real estate loan broker will be grateful for your exquisite presentation.  The commerical real estate loan broker is your friend.

SunriseTacticalGear

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Re: When to start a bank account for your business
« Reply #4 on: October 07, 2019, 03:40:26 PM »
A lot of businesses start as “cash for friends and family”. If you are past that, and want to “write things off” you should set up a business account. Flow all funds in and out of that account and only use the business account for business stuff.
Hire a CPA, which is a business expense and start expensing cool shit!!

Apatch

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Re: When to start a bank account for your business
« Reply #5 on: October 09, 2019, 12:50:11 AM »
I did it the moment I started my buisness.

It keeps everything much more organised then do all the work from a personal account.