Lodinews.com

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Entrepreneurs Need a Business-First Banking Mentality

Print
Font Size:
Default font size
Larger font size

Posted: Sunday, March 16, 2014 10:00 pm | Updated: 1:32 am, Mon Mar 17, 2014.

(Family Features) Owning a home-based small business offers undeniable perks - flexible hours, the ability to control your own professional destiny, even the option to work in your jammies if the mood strikes. But many first-time business owners operating out of the home underestimate important aspects of operating your own company - especially when it comes to finances.

Whether you're funding a startup or sustaining an existing enterprise, money management is a critical aspect of successfully running your home-based business. However, many first-time entrepreneurs make the mistake of treating their home business finances similarly to their personal accounts. In the long run, this can be a costly mistake, according to Jay DesMarteau, head of small business at TD Bank.

Checking accounts are the most popular financial products for small businesses, but a recent TD Bank survey found that more than 40 percent of small business owners are using the same account for business and personal use.

An important first step is to understand the distinctions between a business checking account and a personal checking account, and why the former is a safer bet for your business. Business checking accounts allow small business owners to:

  1. Manage your cash flow better. Small business owners have better cash flow management and more advanced payment capabilities when they choose business banking over personal banking for business.
  2. Build your business brand. Having a business checking or business debit card with your company name on it can help establish an identity around your business. Also, customers might feel more comfortable writing a check to a business instead of a personal account - it feels more professional.
  3. Simplify your accounting and bookkeeping. Having a personal checking account and using it for your small business means you aren't separating your business and personal finances. And that can make accounting and bookkeeping more complicated.

In many cases, business accounts also afford a different level of protection and security than personal checking accounts. "Small business owners take on risk," DesMarteau said. "A small business owner has better business fraud control when they use a business checking account compared with a personal checking account."

Choosing the right bank can also help you effectively manage the money side of your home-based business. The vast majority of small business owners (74 percent according to one of TD Bank's local Small Business Pulse Check surveys) rely on lines of credit for expenses such as product or equipment costs, rent and marketing. Selecting a bank that offers diverse account options, bringing you the whole bank, including business checking and lines of credit, as well as loans, savings and credit options, can prepare you to tackle any number of financial scenarios that arise as you build your business.

With proper financial guidance and a strong banking partner, small business owners can confidently focus on bringing their entrepreneurial visions to life.

For additional information to help assess your small business banking needs, visit www.tdbank.com.

Photo courtesy of Getty Images

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

Poll

Loading…

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists