reviewing your business finances on a regular basis. It gives you a better perspective [on] and more knowledge about whether your business is successful.” Business owners can then use that information to identify ways to increase profitability or cut costs.
SHOWPROFESSIONALISM
Davidson, who is also the founder and president of the African American Female Entrepreneurs Alliance, thinks a business’ image is important not only in dealing with clients and suppliers but also for the growth of the business. “If you’re looking to capitalize the business, or if you’re looking to expand the business through a bank loan or some other community development financial institution, they are going to ask for your business bank statements. They don’t want to see your personal bank statements,” she says.
Follow these tips when setting up a business account:
REGISTER THE NAME OF THE BUSINESS AND APPLY FOR A TAX ID NUMBER
Hamilton says you may have to register the name of your business with either a state agency or at the county level, depending on the state in which your business is based. Contact your county clerk’s office for fees and procedures. Talk to your local IRS office and ask for Form SS-4 to apply for a tax ID number.
COMPAREBANKING SERVICES
By first taking a look at the number of deposits, withdrawals, and balances you typically have each month, you can figure out the type of business account that suits you best, especially since some banks offer free checking for business accounts.
PRESENT PROPERDOCUMENTATION
All signers on new accounts have to go through identity verification as part of the U.S. Patriot Act, but the documents you will need to sign will depend on the type of business you own. Check online to see what your bank requires.