Posted by & filed under Business Finances.

Two heads are better than one. Good things come in pairs. Two peas in a pod. Two sides of the same coin.

There are lots of fun idioms and expressions about the number two. So let us put in our two cents’ worth.

At Kerndt Brothers Bank, we’ve been protecting the interests of individuals and businesses since 1856. We know a thing or two (see what we did there?) about banking. And we’re always looking for ways to improve your banking experience.

As a business owner, we recommend that you have two banking accounts: a business account and a personal account. Why?

It’s important to separate your professional finances from your individual finances for the following five reasons:

  1. Tax season: According to the IRS, business expenses are deductible if you operate a business on a for-profit basis. Keeping your business account separate will make it much easier and faster for you to prepare your tax return. Personal taxes: On the same note, keeping your household expenses separate from your business costs will help streamline the time it takes to organize your personal taxes. Our user-friendly online banking can keep all your statements organized and in one safe easy to find place. Free EZ Bill Pay helps save you time and postage when paying your bills.
  2. Conflict of interest: If all your finances are segregated into two separate accounts, you will avoid even the appearance of impropriety. And, heaven forbid, if you’re ever audited, your standalone business banking account will clearly show all your business costs and transactions.
  3. Paying yourself: Set a certain amount each month as your salary and never exceed it. Transfer the money directly from your business account to your personal account. You’ll have a clear trail and timeline of your salary history.
  4. Missing information: Maintaining separate accounts makes it easier to organize your finances and help prevent overlooking potential deductions.
  5. Building credit: Having a separate credit card for your business will help you build a credit history, apart from your personal credit history.

Let the professionals at Kerndt Brothers Bank help you set up separate accounts. We know running a business requires a lot of time and effort. So we’ve made it even easier for you to conduct all your financial transactions, on your own time, from anywhere in the world. You’ll appreciate all the convenient features we offer, including:

  • Internet Banking 24/7
  • EZ Phone Banking 24/7
  • EZ Bill Pay 24/7
  • ATM/Debit Cards
  • E-Statements
  • Automatic Transfers
  • Personal Money Orders
  • Cashier’s Checks
  • Wire Transfers

Contact Kerndt Brothers Bank or stop by one of our five office locations today and let us simplify your life.

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Disclaimer

The material provided on this website is for informational use only and is not intended for financial or investment advice. Kerndt Brothers Bank and/or its partners assume no liability for any loss or damage resulting from one's reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.