Are you still using your personal bank account for your business?

Are you still using your personal bank account for your business?

Finance & Accounting

GlobalLinker Staff

GlobalLinker Staff

12 Oct 2020, 15:03 — 4 min read

In the early stage of your business, you may not think it is necessary to set up a separate business bank account, especially if you’re a sole proprietor. However, having a business bank account can save you time, money, and headaches in the future.


Just imagine the time you will have to spend in separating your personal and business transactions in your bank statement when it could have been spent doing other important tasks.


Even Mike San Diego, Chief Financial Officer of JK Capital Finance, highlights the importance of this in the webinar series of ‘Practical Practices’ on UnionBank GlobalLinker. “You cannot use your personal savings account as your business bank account. Otherwise, you’re doomed to fail.”


Also read: Practical Practices: Financial management tips for your business

Why should you separate your personal account and business bank account?

If you seriously want to manage your business finances, part of the initial steps is to set up your own business bank account. Here’s why:

  • Track your business transactions and expenses easily. This helps you avoid mixing your personal and business funds and allows you to have well-organized bookkeeping and accounting.
  • Monitor your cash flow properly.  As you can monitor your transactions, you can clearly see your financial position which can help you make better financial decisions.
  • Build your business credibility. Sending your personal bank account for payment can blow off your relationship with your client. Having your business bank account doesn’t just show your credibility as a legitimate business, but it also shows professionalism.


Keep your business out of trouble

Think of long-term. If you want to score big clients from top corporations or established companies, it is a must to have a business bank account as big companies always prefer to make payment to business bank account as part of their due diligence.

Grow your business and open ‘Biz Starter’, a business checking account

Now that you understand the importance of having your own business account, it’s time to open an account!

UnionBank is introducing ‘Biz Starter' account to help business owners like you to have their own checking account with only P5,000 as an opening balance and minimum balance requirement. The advantages of a Biz Starter account are:

  • Low opening and minimum balance requirement. Only P5,000 to open and maintain your account
  • Application can be done online. Open your business checking account even at the comfort of your home
  • Access to online banking. Pay your bills in just a few clicks!
  • Quick response. Once you set your schedule here, a dedicated relationship manager will contact you to help you set up your account

 
Also read: Introducing Biz Starter: Checking account for MSMEs, exclusively for UnionBank GlobalLinker members only

Having your own business bank account will make it easier for you to manage business effectively. Open your Biz Starter account now

 

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