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Small Business Banking Improvements

Audio version available here:

Length: approx. 1 min. 30 sec.


Business owners know how essential it is to keep personal and business finances separate. Always have separate accounts for checking, savings, and credit accounts so your personal and business money does not get mixed up. This involves choosing the right bank to store your business funds, and maximizing protections for them.


Currently, the FDIC insures up to $250,000 per account. This may make you want to spread your money to multiple banks to maximize coverage. While this can be a good practice, it can get tricky to manage so many different accounts across multiple institutions. Another way to keep your money in the same place but still secured for more than $250,000 is to spread the money over different account types, “such as savings, IRA or trust accounts,” since “[FDIC] coverage is per account category”.


You may also want to consider opening a joint account or adding beneficiaries. With a joint account “where you are a 50% owner”, you can automatically double your coverage to $500,000. By adding beneficiaries to an account, another $250,000 will be insured, up to $1,250,000.


If you do decide to go the route of storing business funds in several different institutions, make sure you properly vet each one, and most importantly, don’t try to manage your finances on your own. If you have several accounts, it’s easy to get confused when you do your books. Trust an experienced professional bookkeeper, like those at XQ CPA, to help you with your finances. We would love to help you keep track of your business’s numbers. Reach out to us by phone or online on our website.


Phone: 832-295-3353


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