Small businesses wield significant influence on the U.S. economy, with over 33 million operating in the country, collectively constituting 99.9% of all American businesses. These enterprises have been instrumental in generating nearly two-thirds of the nation’s new jobs over the past eight years, highlighting their crucial role.
The U.S. Chamber of Commerce emphasises that as soon as a business starts transacting, it should open a dedicated business bank account. Unlike personal accounts, business accounts offer specific perks essential for organisational growth.
One vital account is the Checking Account, which serves to separate business and personal finances. It is used for day-to-day transactions, such as purchases, bills, and deposits, contributing to streamlined financial management.
Another essential account is the Savings Account, ideal for storing profits not immediately needed. While offering a higher Annual Percentage Yield (APY), it may have withdrawal limitations. This account can be complemented by business CDs and Money Market accounts, providing flexibility in managing financial resources.
For businesses directly selling products to consumers, a Merchant Account is necessary. It enables the acceptance and processing of electronic card transactions. Establishing agreements with banks and credit processors is common, often involving associated fees for the use of services.
Additionally, small businesses are advised to open a Business Credit Card account. This facilitates payment options and, importantly, separates business and personal expenses. Business credit cards enable monitoring of spending and streamline record-keeping, often accompanied by perks like rewards points or airline miles.
The distinct advantages provided by these essential business accounts contribute to the efficiency, growth, and financial well-being of small businesses. Each account serves a specific purpose, and their thoughtful utilisation is key to fostering success in the dynamic economic landscape.