Have you made the decision to start a new business? From a bankers point of view one of the most important steps is opening a Bank Account. Many small business individuals make the mistake of not opening a Bank Account for a number of reasons. They claim its too expensive or it takes too much time to deposit the funds. Maybe its the long list of documents required to just open the account at the bank that scares you.
However when it comes time to seeking financing in the future it will be difficult for you to validate what revenues you are making if you do not have bank statements. Many small business individuals have something called “In-house Financial Statements” and this type of record keeping requires supporting documents i.e. bank statements, more than any other type.
As much as its a pain to deposit the funds just to withdraw them in the early stages its very important. At some point you will require financial assistance and its important that you keep records of how much funds your business is making. It also assists you in tracking where your funds are going. Managing your funds ensures the success of your business.
Banks are highly regulated and therefore its important that they have detailed knowledge of all their customers – especially their revenue levels. Do things the right way from the beginning and it would be so much easier when it comes time for you to approach a Bank.
Keep tuned in to the next article:- Why having a qualified Accountant on your payroll as a small business individual is important?
If you have any questions please do not hesitate to contact us at support@afbconsultingservices.com