Few Advantages of a Business Chequing Account Canadians Should Know About

Since business is counted as a separate entity from its owners, it is a good practice to perform business-related transactions through a separate business account. A business chequing account is similar to a bank account that can be opened in the name of your business. Various transactions, including deposits, withdrawals, bills and other payments through writing cheques, automated transfers, etc., can be carried out smoothly both in online and offline modes through this chequing account. Also, it is pretty easy to open a business chequing account in Canada by applying and providing the required documents to your bank.

There may be different types of business chequing accounts depending upon the number and types of transactions permitted on a monthly basis.

Let’s look at the benefits of a business chequing account:

1. Organised Business Transactions: A chequing account helps you to keep a separate and organised record of all the monetary transactions performed as a part of your business. The records are not mixed up with individual transactions, and hence you can easily assess your business profits by considering the expenses and income earned over a period. If you perform business transactions from your personal account, it can be time-taking to separate the personal and business transactions for gauging the performance of your business.

2. Protection of Personal Assets: Having a separate business account shows that your business is not a part of your personal asset and is maintained as a separate entity. If the business goes into losses anytime, and there are stakeholders devoid of their payments, they cannot claim over your personal accounts. Hence, your personal assets stay safe and protected.

3. Smooth Handling of Tax Payments and Deductions: Keeping a separate chequing account for your business not only helps to maintain organised business records but also in proper and correct tax filing. Timely and accurate filing of tax is crucial for every business to keep functioning smoothly and without any penalties or issues raised by the federal tax authorities. When you keep your business accounts separate, it is easier to deduct business expenses and file tax. Mixing your personal and business transactions can easily attract undue attention from Canadian Revenue Agency (CRA) or the Internal Revenue Service (IRS).

4. Easy Processing of Credit Card Payments: It often happens in business that the customers and other merchants wish to make credit card payments. Providing your stakeholders with more options for payment, you can enhance your business scope in the future. Banks may have different fee policies for providing this service, and hence you must check with them for availing the service.

5. Improves Professionalism and Business Credibility: Having a chequing account helps you to portray your professional behaviour as a businessman. Also, it enhances the credibility of your business in the market by reinforcing the fact that your business is a serious affair for you. Hence it may help you to seek finances for your business from different sources.

An Account With Multiple Benefits

Keeping your personal and business transaction separate shows your professionalism and seriousness about the business. Also, it is a hassle-free way to deal with all the monetary matters of business including tax handling, credit payments, etc. Make sure the bank you choose is a member of CDIC (Canada Deposit Insurance Coroporation) to keep your funds safe and secured.