There are two kinds of business owners; those who see personal life and business as one, and those who set boundaries between business and personal life. Whilst the former can open you and your business up to certain risks, the latter has benefits. One of the major ways to keep business distinct from your personal life is by managing your finances.
As much as it is necessary to keep your income and expenditure in check, having a separate bank account dedicated to your business is also important. Aside from the fact that it makes it easier to manage business funds away from personal funds, having a business account also:
- Reinforces your professionalism: Having a business account with a registered business name bolsters your credibility in the eyes of clients and prospects. It subtly assures your guests of your legitimacy as a business entity and shows investors that you take your finances seriously.
- Keep track of income and expenditure: Keeping track of cash inflow and outflow specific to your business affairs is more straightforward when you have an account strictly for business. It becomes easier to track what was spent, and the reason for the expenses as well as the income over a timeframe.
- Aids proper records and audit: Piggybacking on the point above, keeping your short-let business and personal funds enables you, as a business owner to have properly documented financial records. Proper financial records not only help keep you and your accountant sane when crunching the numbers, it also proves useful in the event of an audit.
- Automate payments and recurring transactions: Repeating the same transaction week-in, and week-out can be tiresome. It is significantly easier to automate recurring transactions with an account dedicated to your business. This way, you are certain all funds within that account can be used to pay your employees and service companies essential to your short-let business with little hiccups.
- Facilitate access to loans and grants: Bank statements are a common requirement for obtaining loans and grants targeted at businesses tend to require business accounts alongside other relevant details. Due to the nature of the debits and credit transactions, an account that caters to business and personal needs would be less fitting in both instances—obtaining a grant or a business loan.
If you are just starting a short-let rental business, or you’ve been in a scene for a bit but you’re still yet to open a business account, we truly hope we have swayed you in the right way with this article.
Do you want to boost your revenue and optimize your operations as a short-let property manager? Then you should check out COMFY right now, and sign up to gain early access too!
