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Woops towards the end of the video I think I said Nolo bank, I meant to say "Novo" bank. My apologies.

My name is Mike Kelly, Owner of Mike Kelly CPA where I help my clients build a wealth by mastering business ownership, accounting and taxes.

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Chapters (Time Stamps):
0:00 Introduction
0:43 Reason 1
1:59 Reason 2
2:33 Reason 3
3:55 Reason 4
4:35 Reason 5
5:15 Reason 6

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1. The first advantage of having a business checking is it saves a tremendous amount of time in record keeping. How many of you like record keeping? When I mention the word record keeping to client’s they typically cringe and want to run away immediately.
When your business has little to no transactions you can sometimes limp by with your personal checking, because there are so few transactions, they are easy to identify and bifurcate from your personal checking activity.

2. But as your business grows combing through your personal checking account every month and trying to identify business expenses from personal expenses will lead you to more work and more headaches. Good heavens if you make your accountant do this for you it is going to cost a fortune. But let me share a little secret. There is another big reason you want to have you personal and business activity separate. Can you guess what it is is? The word starts with an L and is followed by the word protection

3. If you guess liability protection you are spot on. When your business transactions are mixed with your personal transactions this is known as co-mingling your assets. God forbid if someone were to sue you they would have a much easier time going after your personal assets, because they are not legally separated. Even if you have an LLC or corporation that is not good enough if you are still mixing personal and business expenses. This is why you seriously need a business banking account if you have a separate legal business entity.

4. Lastly Did you know you know that your business can build a credit a score? Just like how you establish a credit history for yourself personally your business can also establish its own line of credit, but it all starts with opening a business checking account. The sooner you start the sooner you can begin
5. Speaking of payments of credits if you want to be able to receive credit card and all other forms of payments you will need a business checking to do so.

Those are just a few of the reasons to have a business checking. If you look around, you can account that offer no annual fees. If what you do is a small side hustle that has less than 10 transactions a month you can probably go without one, but ultimately take will limit your long-term potential if you want to grow a successful business.
To learn more about business ownership, accounting, taxes, and investing checkout my playlist here. If you need professional help me with your accounting and or tax matters, you can reach me at Mikekellycpa.com to receive a quote for services.