Most small business owners dread the idea of keeping books. Daily accounting is a cumbersome, tedious task for everyone but the true number cruncher. But without an accurate set of books, all businesses will fail. An accurate set of books helps the owner get a clear idea of the financial status of his business. The owner who maintains an accurate, financial picture of the company can thwart potential disasters by shifting the company's general direction. Businesses can be broken or saved by the accuracy of their books. This article will discuss a fantastic tool for simplifying the accounting process: the business bank account.

Regardless of the type of business you are starting, you need a business checking account before you do anything else. Your local bank can help you with your business checking account needs. However, you might have to file for a DBA before you get an account. If your bank requires a DBA to be filed prior to opening your new account, they can usually steer you in the right direction for obtaining one. If the thought of additional monthly fees for a second account bother you, don't worry because more than likely the bank will have a "fee free" account option for your new business. If your bank does not have free small business checking, just shop around. Visit all the banks near your home or office. Eventually, you'll find a bank that has zero fees or none at all. Your new business checking account should come with a credit card that is directly attached to it.

There are a few rules that you must keep in mind when you have your business bank account. The first rule is easy: don't pay business bills with your cash! Why? Because it's too easy to forget about cash payments and they may never make it into your ledger. Your bank account should be used for all payments and all deposits. Always write a check or use your credit card for every bill no matter how small or insignificant it may seem. Why? When you use a check or credit card, you are guaranteed a record of your transaction.

Another guideline: deposit all income into your bank account. This includes all checks made out to you and any cash you might have received. The reasoning behind this rule is the same as above: guarantees a record of your income. When it finally comes time to balance the books, it will be much easier to accomplish when your account has an accurate record of expenses and income.

The last guideline to remember is to never pay personal bills through a business account. At the time of this writing, it is legal for a sole proprietor to mix funds in their bank account. However, it is not a good idea. Bookkeeping can get very confusing when you pay personal and business expenses from the same account. When a business has multiple owners, mixing funds can cause unnecessary tax and legal complications. Want the simple solution? Don't mix expenses!

If you follow the above listed guidelines, your business accounting will be much easier. Every business owner (new or seasoned) should try to follow the above listed bank account suggestions.