Types Of Business Accounts That Business Owners Should Know
Having a business account is essential for business owners. Using a personal account might seem tempting and convenient, but it is not advisable in the long term. There are many benefits of having a business account for your company. It helps you streamline your finances during tax filings and audits, helps you secure business loans and simplifies your payments.
If you are a business owner starting out on their journey of opening a dedicated business account for your business, you might be curious to know about your options. It is better to gain knowledge about the different types of business accounts available to you and choose the one that better suits your business needs. Read the following to understand the different types of business accounts.
- Multicurrency Business Account:
A multicurrency business account is an account which helps you manage your transactions in different currencies through one single account. It has a lot of benefits for business owners with a global presence.
- Allows you to receive, and send funds in multiple currencies.
- No need to make a separate account for different currencies.
- Helpful to mitigate against exchange rate volatility.
- Streamlines all your international payments in one place.
- Business Savings Account:
A business savings account is like a savings account but for businesses. For new businesses, it is wise to start your company’s financial journey with a business savings account.
- Creates a storage of funds that are not used on a daily basis.
- Acts as an emergency fund for your business during unforeseen circumstances.
- Helps in the growth of your business.
- Helps you earn interest on savings.
- Allows your company to adapt to market challenges.
- Business Checking Account:
A business checking account is another popular type of business account that most business owners go for. It comes with its own sets of benefits and is not only helpful for established businesses, but small, medium and even startup businesses.
- Useful for daily business transactions.
- Funds in this account are very liquid and easily accessible.
- Funds can be transferred to a business savings account.
- Helpful in payment of bills, invoices, and other payments.
- Accepts credit card payments from customers.
- Streamlines payment of taxes.
- It can be opened with a low initial deposit.
- Business Merchant Account:
A business merchant account is a very important kind of specialized business account for businesses which need different types of payment options. Business merchant accounts are also of various types, tailored according to the type of business.
- It accepts multiple types of payments, such as credit cards, debit cards, mobile payments, and digital wallets.
- Improves cash flow by allowing multiple payment options to customers.
- Good for processing electronic payment systems.
- Increases sales by improving customer convenience.
- Allows for secure transfer of money.
- Integrates sales for business owners in a streamlined way.
- Foreign Currency Account:
Another type of an important business account is a foreign currency business account. A foreign business account differs from a multicurrency business account. While a multicurrency business account allows you receive and send money in multiple currencies through one account, a foreign business account is for a specific country or currency. It has its own unique benefits for certain types of businesses.
- Allows you to send and receive money in a foreign currency.
- Either lessens or completely eliminates conversion rate fees.
- Protects against international exchange rate volatility.
- Helps you take your business to an international market.
- Streamlines international payments for your business.
- Maintains confidentiality and security of global payments.
Apart from the above-mentioned business accounts, there are also money market business accounts and certificate of deposits (CD) business accounts. After learning about these and multicurrency, foreign currency, merchant, checking and savings business accounts, you will be better prepared and knowledgeable to open your very own business account. This is a positive step forward for your business to take it to new heights and expand its reach.
A business account not only separates your business from your personal life but also makes your business appear more professional. It gives your business its own identity and dedicated financial portal. It is helpful for all your business transactions and allows you to effectively manage your employees’ salaries, merchant payments, profits, etc. With a multicurrency business account, you can also take your business global.
Streamline your company’s financial activities and reap the benefits of your preferred type of business account.
