As a service station owner, you might be curious about opening a separate business bank account. This may be to separate it from your personal accounts or to separate it from another business. We’re here to tell you why it’s a good idea to open one as soon as possible, so you can start seeing the benefits.
If you open a separate bank account for your service station, you will:
Save time and money on admin tasks
If you have a separate banking account for your service station, hassle during tax time will be lessened tenfold. You don’t have to work out which transactions were relevant to your business and which were personal or separate transactions for different businesses under your ownership. If you use a bookkeeper, you won’t have to pay them to do this task, either.
If you use accounting software, having separate accounts will make keeping the books a much simpler ordeal because some accounting packages integrate with your bank account and automate the work.
Be able to more easily track business
With a bank account dedicated solely to your service station, you can more easily track expenses, income, and profit. You can look at the numbers and have all the relevant information to be able to make decisions on where to invest time and money, and where you can reduce costs and expenses.
If you combine your business account with your personal account or another business account, you have to spend time weeding through the two types of expenses before you can make any sort of informed decision.
Be prepared for what’s to come
With a business account, you will be more prepared when it comes time to get your books in order. If you need to apply for a loan or financing in order to expand your service station, you can easily do that with a separate business banking account. Having a separate account also makes it easier to value your business if you decide to sell.
Be able to make deductions quickly and easily
With a separate business account, you can identify and deduct fees from your tax liability without having to sort through and figure out which fees are personal and which relate to your service station.
Banking With Your Business
Some of the Service Station owners we work with also set up separate business bank accounts for different areas of their business. For example, you might like to set up a tax account so you have the funds ready to pay the tax office. You also might like to have a separate account you put funds into each week for equipment upgrades so you have the funds ready to go if a fridge breaks down.
If you’re just starting out, it’s a smart idea to put a business banking account in place right from the beginning. But if you’re not new to the game, it’s still possible for you to separate your accounts and open one that is dedicated solely to your service station.