Whether you have plans of opening up a big or small business venture it is important that you set up a separate business account. But you may think that this is not necessary since you already have a personal savings or checking account why not use it for business purposes then? Well, a lot of people don’t really have an idea about the real purpose of setting up a business account. Owning an account that is named after your business brings in a lot of advantages compared to its disadvantages especially if your company is fairly new in the industry.
One of the reasons why business owners are encouraged to get a separate account for their business is to help you segregate your business expenses from your personal ones. For example, you have a regular job in which you are getting a fixed monthly salary, your monthly savings goes to your personal account. Whatever earnings you may have on your business should be placed in a different account so it would be easier to monitor whether you are earning or losing money. It will also make it easier for your accountant to compute your quarterly or annual business tax.
If you wish to ask for some assistance in opening a corporate bank account in Singapore, you can look into some of the tips below that can guide you with the process:
A business account is treated differently compared to a personal savings account. Before deciding to open an account its a good idea to visit a couple of banks and make an inquiry regarding their business accounts and if they have any ongoing promotions for new customers. Their marketing team usually sets up promotions and freebies to attract more clients.
If you happen to have a personal account you could probably consider opening your business account on the same bank so it would be more convenient to transact. You can request for a passbook with ATM account so you would have the visibility of all incoming and outgoing cash transactions.
Ask more about interest rates. Most banks offer different interest rates, personal accounts have a lower interest rate at approximately 3.5% per annum. We always want to keep our money to were it has the potential to earn more.
Do not forget to ask for the other rates such as withdrawal rates from other branches, additional fees when someone cashes out a check, penalties in case of insufficient funds or bouncing checks. Banks are transparent enough and won’t really mind giving out those fees.