Why you need a separate bank account in your small business

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Back to separating business accounts

So you have taken a leap and started your own business, clap for yourself. You did well. But that is step one of it all. Oh, the next step is the aspect of managing your business finances and cash flow.

And in case you had no idea, you should separate your business money from your personal money— because they are not the same thing. They are different entities, but it's still all your money in the end.

You shall have to separate it ah! But, it will allow you to manage your business' finances better, and your business will have a better chance of growth and upscaling.

Here are 6 reasons why you really should separate your business bank account from your personal bank account:

It makes your business more trustworthy

Remember the scam article? Yes, this is just one thing that makes your business seem less scary. It's a way to make your customers and suppliers feel safe and less doubtful of your authenticity.

Oya swear that you don't feel somehow when transferring to one Ade Obi Taofeek's account, unlike when you're transferring money to a business account? Instead, you feel secure that your money hasn't missed the road and it's going to the right place.

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You'll need it to apply for loans and credit

It's just procedure for the bank or any financial institution that wants to loan their money to your business to check that you have a running business that is profitable without diluted finances.

This means they'll want to know if the money you say your business is making is true or if the expenses you have is real

It helps keep your finances in order

Make we no talk too much, just Kuku be using the new Kippa wallet plus all the other things you've been using, dear.

So all your income, expense, invoices, debt payments and financial reports go now balance. Kippa, go just Dey help track anything you spend and anything them pay you. That's what other banks cannot offer that we can; you get a Kippa virtual wallet— know that all your finances are in order.

Separating your finances makes it easy for you to cut down on the number of hours you spend racking your head because you don't know where one money came from, but it's just there somehow.

It makes paying taxes easier

We talked about how you're only taxed on your business's income from the tax article. So you don't think that with two different accounts, life no go sweet? Moreover, you would even be paying less!

It's easier to sync with your accounting software

We are highly disappointed if you don't have accounting software like Kippa at your big age and stage!

We can't be looking at you struggling to do calculations day in and day out, Oya, what the paper should lost or rain beat it or rat should eat what will you do, ehn?

Prepares you for the future

You know, it's time you realized that life is not hard and you have to do everything with ease.

It's much easier to have a separate bank account set up from the beginning because that means you won't have to go through the stress of changing accounts in the long run. Also, the stress of telling the whole that you have a new bank account is eliminated.

How can you get an account number?

Now that you know why you need a separate bank account, you should know that Kippa has some good news for you! With Kippa, you can now create a free account number for your business. An account number that carries your business name will make you look very professional and let your customers see that you mean business. (or don’t you?)

Getting your Kippa account number is super easy:

Step 1: Log into your app

Step 2: Click the "Money" button located below in your navigation bar.

Step 3: Click on "Account details" located at the top right corner of your screen.

Step 4: Enter your Name, email and BVN.

Step 5: Voila! 🎉 Wait for a Kippa verification message. (You'll get this in a few seconds).

Keeping your business and personal accounts separate is important for better business financial management, and now, there’s no excuse for not having one. So log in to get your account number now and start running your business better.

Hafeedoh Balogun

Hafeedoh Balogun