The Business Savings Account Feather
Michalis 'BIG Mike' Kotzakolios
Defined Tag: Business Savings Account.
With the upturn of the market and world economy in the last few months, more and more people are considering starting a new business. Not only is new business spurred on by the economy, but also the great possibilities that the internet seems to hold. For whatever reason a person gets into business a consideration to take serious hold of is the acquisition of a business savings account.
When people are sole proprietors of a business their inclination is often to not concern themselves with getting away from their old personal accounts. However, the benefits to utilizing business funds in a more business-specific account has its upside, which is worth considering. These benefits include tax accountability, interest rate hikes and even matters of a more personal, egoistic nature.
When one speaks of a business savings account, a thought that comes to mind is "how can I benefit from it (as opposed to other accounts)?" In this modern world of ours it seems that taxes are nearly everything yet particularly for business owners. When monies are placed in accounts that are representative of business profits this will aid a CPA in sorting out what is what. As well, it limits suspicion on the part of the IRS for reasons that aren't exactly clear. (The tax board terms this 'transparency' amongst other similar catch-words in use today.)
Another very popular reason for stowing one's money away into a business savings account, as opposed to a personal account or mattress, is interest. Normally most personal accounts pay a percentage of only 3 or 4 percent (if you're lucky, in some places). However, banks know a good deal when they see one. The truth is that they tend to offer a higher rate of interest for accounts servicing businesses as they know that these accounts tend to make much headier deposits.
Finally, there is the ego of the business person. Business people tend to see themselves as separate, even above the average person. This is not an attack, but a simple fact. The reasons for such feelings of smugness or even elitist superiority are that business people are go-getters, and they know it. When a person holds multiple accounts at the local bank, including a business savings account, well, that just feels like one more giant purple feather in the business cap, and why shouldn't it feel as such?