5 reasons why a business should open a bank account
To help you understand why opening a bank account is important, find below 5 of the main reasons:
· It is now mandatory by law.
Law no. 31/2019 “On tax procedures in the Republic of Albania” provides for that natural commercial taxpayers, registered for value added tax, legal entities taxpayers, regardless of their turnover, and non-profit organizations registered with the tax authority, are obliged to have a bank account for the registered business/organization and declare it to the tax administration.
· Helps you to view your business as a separate entity.
By opening a bank account for example at Credins Bank as a business, you will have a complete perspective on the cash flow of your business. Having a separate bank account means that all expenses and profits are transferred through this account, making it easier for you to control your finances and see exactly how much your business earns and pays for itself. In case you have several businesses the use of separate bank accounts helps you to better share and manage them. Also, a business bank account enables you to take advantage of many other products and services, by increasing the sales and efficiency of your business. If you have a business account with Credins bank, you can be provided with a debit or business credit card, you can benefit various forms of financing to cover your business needs, to transfer automatically your employee salaries, access your bank accounts through the application Credins Online, etc.
· Establish business credibility.
When a customer receives an invoice from your business (other than your personal name), it helps develop integrity, strengthen your brand and also increases the credibility of your business. You are also more professional when provide a customer with an invoice and a bank account number in order to make the respective transfers or when you pay the supplier invoices from your account, etc. In this way you strengthen your business image.
· Manage better your business revenues.
By organizing and separating personal finances from business finances, you will be able to better manage your cash flow and ensure that business income is not used for personal expenses. In this way you maintain the business “Financial Health” by checking daily cash inflows and outflows and making the decision-making process easier for further business investments.
· Establish a business banking relationship.
Establishing a business relationship with the bank will become significantly important as your business grows. Having a business bank account is the first step to be financed in the future with loans in order to further expand your business, to be provided with business cards, overdrafts, payroll agreements, POS, etc. Therefore, it is important to establish a bank-client credibility relationship from which you can benefit good terms and conditions for future banking services.