Most new business owners cringe at the idea of keeping an accurate set of books. Daily accounting is a cumbersome, tedious task for everyone but the true number cruncher. But without accurate business accounting, every business will fail. Accurate books are necessary for a business owner to understand the financial status of her company. The business owner who keeps an accurate set of books can easily avoid potential financial disasters. Businesses can be broken or saved by the accuracy of their books. This article will discuss an important asset for any small business: the business bank account.

The first thing any new business owner should do is setup a business checking account. Visit your local bank and tell them you need to open a small business account. Before you can setup your account, most banks will require that you file for a DBA. If your bank does require that a DBA be filed before they can establish a business account, they can tell you where to file the paperwork. Most banks offer a fee free checking account for new businesses. If you find out your bank doesn't offer small businesses a fee-free checking account, then simply shop around. Talk to the other banks near your home or office. Ask if they offer free checking. Eventually, you will find a bank that offers a fee-free business checking account. Also, be sure to ask for a debit card or bank credit card that is attached to the account.

There are several rules you should keep in mind when you manage your business bank account. The first guideline is easy to follow: don't pay your business bills with cash! Why? It's too easy to forget about cash payments; they may never make it into your expense ledger. You must use your bank account for all payments and all deposits. You need to use business checks or a business credit card for every bill. A permanent record of every bill or payment is necessary, and checks and credit cards do this automatically.

Another rule you must follow: deposit all income into your bank account. This includes checks made out to you. It also includes any cash you received. If you can follow this simple guideline, you will be guaranteed a record of your income. When your bank account contains an accurate record of expenses and income, it will be much easier to balance.

The last rule you should follow: don't pay for personal bills with your 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. It becomes more difficult to properly balance the books whenever business and personal expenses have been mixed within the same bank account. When a business has multiple owners, mixing funds can cause unnecessary tax and legal complications. The simple solution to avoid these potential problems is to never mix expenses.

By following the above listed guidelines, I promise your business accounting will be much easier to handle. Seasoned business owners and new business owners would both do well to follow the above banking suggestions.