Business Account for your Small Business
After your company is registered with the government, the next step would be to open a business account for your registered company at your bank.
Why Have A Separate Account?
In the long run, it’s helpful to keep your business account separate from your personal account. Keep your personal income in one account and company’s income in your business account.
Having an account for your company keeps track of expenses like tools, work materials, and payroll.
You would even use that account for promotional lunches or advertising cost.
Most importantly, a business account keeps your company’s expenses organized for your accounting information at tax time.
Your Business Account Name
When you open up your business account, the name of the account should be in your company’s name.
If your company’s name is Jay’s Painting, your business account’s name would be Jay’s Painting.
Your personal account is under your given name. This account should be used for your personal income and not to be mixed together with your business income or transactions.
If you need to register a business name for your new company or want to learn more about how business registration works, visit us at tradetrackers.ca.
My first Business Banking Deposit
As far as banks go, I liked the way TD Bank makes banking easy.
Most of their banks are pet-friendly, have the longest daytime banking hours, and open Saturdays and Sundays so you never miss cashing that check.
Eventually, I opened up a small business account with them, but only after I made a rookie mistake using the wrong account (my personal account).
It happened while I was working for a Vancouver construction company that did restoration work. They subcontracted me out to repair 8 units that were water damaged.
When the work was completed and signed off by the project manager, they sent me a fat check in the mail.
I was so excited that I ran down to the bank to make that first deposit.
Banks can take 3-5 business days to process your check and release the funds. A week had past and still no deposit.
After contacting the bank to see where the money went, it turned out that I put the check that was made out to my company’s name (Brother of the Brush Painting), into my personal account.
The name on the check didn’t match up with the account name, so the bank returned the check to the restoration company.
After some embarrassment, the company issued me another check, which was deposited into my new business account.
After your business is registered and you’ve opened up your business account, you can avoid those long lineups on payday and scoot right on up to the business teller to cash your check.
If you have any questions about company registration in British Columbia, Watch our video on how we help or talk to us with us live on our insta-chat service.
Good luck with your businesses everybody!