The essential step in setting up a cell phone repair store is to open a business bank account. Not only is it a legal requirement for registering your business identity, it is also helpful to keep one’s business finances separate from personal banking. Also, it will help you to look professional and avoid financial complexities of fluid boundaries. And in this article, we will tell you why it is essential to have a business account, how you can open it, and the role of POS software in managing the ongoing processes in your store.
Although opening a separate account for business takes more time, it is worth opening as it will save you from many headaches you face while transacting or receiving payments. It also streamlines your sales and helps you track your taxes that you have to pay at the end of every month or year. Following are some of the reasons why it is better to have a business account.
The business Account looks Professional
A separate bank account for your business always professionally represents you in front of your customers and vendors. It is difficult for a small business owner to find customers initially. And it might be a turn-off for the clients if they get to know you don’t have an account to manage business transactions, because they don’t know then if they’re dealing with a legit business entity.
And it’s not just about your customers! Your cell phone repair parts vendors won’t be willing to do business with you until or unless there is a hassle-free, properly documented, legal funds transferring. So, open up your business account to make it easy for yourself and your suppliers. Moreover, you can take a little help from technology by employing a cell phone repair shop software. It will make your payment processes more manageable and keep track of your cash flow.
It Saves you From Complexity
Everyone looks to start their small repair business at a lower cost. And setting up a business account can save you a lot in terms of cost and time. For instance, you must pay taxes and can’t get away with that. Also, if you used to perform personal and business transactions with the same account, it could get you in a lot of legal trouble.
To avoid this hassle, ensure you have a business account to perform all business-related transactions. This way, you can save time and money, and it helps you retain your mental peace.
Credit Card Payments
One of the biggest reasons behind opening a business account is that you can also accept credit card payments. On the other hand, a personal bank account cannot accept payments made from a credit card. Therefore, although one has to pay a bit more account maintenance fees for a business account, it is worth all the spending.
You must use maintenance ticketing software and a separate account, as keeping all the transaction and invoicing records is challenging. The software will give you every information you need regarding all your payments, tickets, inventory, and employee shift hours.
More Opportunities for Growth
Opening a business bank account could be the first step toward your business growth. It enables you to develop a relationship between a bank and your business. And whenever you need a loan or any financial help from the bank, they will most probably approve that as they will have all your documents and previous transaction records.
Similarly, you can use the amount in the expansion and growth of your phone repair store. Also, if you plan to hire more employees in the future, having an established business account already will help you set up their financial details and open payroll accounts within no time.
How to Open a Business Account?
It won’t be difficult for you to open a business account as it is not that different from opening a personal account. First, find the bank whose terms and conditions meet all your requirements. After which, you have to provide it with some of your documentation, including an employer ID number.
A bank can also ask you to provide some legal documents, which is not mandatory in every case. In addition, the financial institution can ask you to transfer or deposit some funds, after which you will be given your account details. Congratulations! You have successfully opened a business account.
Final Words
Opening a business bank account for your phone repair store brings many benefits. We have tried to explain some, but these are only some; there are several other advantages, but we cannot mention them all.
The only problem you can face while opening an account is to pick the bank that suits you the most. And for that, you have to put in some effort. So, choose the bank of your choice, open your account, and kickstart your phone repair store.
We hope that by reading this post, you got the answer to your question: do I need a business bank account? If you further want to add some information, please comment below and let us know.
