Does Your Business Need a Savings Account?

Does Your Business Need a Savings Account?

As a business owner, you know how important it is to have your finances in order before you can make decisions for your business. Aside from having a revolving fund, you also need to keep a close eye on your income and expenses, which can be difficult without the right tools. Among other ways to keep your business finances in check, this serves as a valid reason why you should open a savings account for your business.

A business savings account can help you grow your company’s assets and monitor them closely, which is a cornerstone in the financial management and stability of your business. Business accounts can also come with handy features for running your company. Learn more about these advantages below!

What is a business savings account?

Business savings accounts are bank accounts that are created just for your company. Depending on your bank, these accounts may come with features like cash flow management and disbursement solutions to help you manage the financial aspect of your business.

Managing your company’s finances is essential to its success. Having a clear picture of your financial situation is key to making decisions that will shape your business. This is why you should look for an online bank that has features that can make your life, as a business owner, much easier.

Here are some advantages you can reap when you open a business savings account:

Monitor your business expenses

Thanks to online banking, you can easily monitor your business expenses on one screen. You’ll have a record of your expenses such as rent, salary, or purchases for easy bookkeeping. The best part? Mobile banking apps are open 24/7, so you can pull up these records at any time.

Not only does this feature allow you to keep an eye on your expenses, but it’s also an excellent tool for lowering expenses. Being aware of your expenses is the first step to curbing it. 

Additionally, with the right online banking company, you can manage your receivables and disburse payments from it.

Prepare for the worst

As a business owner, you know how important it is to prepare for the worst. 

Setting aside money for an emergency fund for your business can help mitigate massive financial losses should any disasters like equipment breakdowns, work injuries, or natural calamities affect your operations.

A business savings account gives your team easy access to these calamity or disaster preparedness funds while storing it in a secure facility.

Plan for growth

As a business owner, you probably already have a vision of where you want your company to be in a couple of years. You may even have dream equipment that you want to invest in for your business. With the right savings account, you can make your dreams happen.

A business savings account can help you track your company’s growth and its journey. It also functions as a safe place to store your assets while you accumulate enough money to make the business moves you want.

Some online banking apps can even alert you of your banks’ offers. These offers can help you save more money, which can be put to other uses for your business.

Separate personal and business accounts

Separating your personal and business accounts is a critical step to running your business. You don’t want these two accounts in the same place, because it can be much harder to keep track of the ins and outs of these accounts. 

The separation between your personal and business accounts can also come in handy especially when you’re filing for your taxes in April. 

Make your business’ money grow

One of the smartest things you can do with your money is to make it work for you. You can do this by keeping your company’s money in a savings account, so it can accrue interest. 

Never underestimate the power of compounding interest. Over time, the interest you gain can fund other aspects of your business. 

If you’re saving up for big purchases, you can even use the wealth management tools that your bank offers to invest your company’s money into low-risk financial instruments that can generate higher returns.

Disburse payments 

Running a business is no walk in the park and you know that you need to be organized with your finances if you want to succeed. A savings account for your business can allow you to issue checks and disburse payments from your company’s account. This can help you stay on top of any bills and payable accounts that can incur late charges.

Protect your assets

Having a savings account for your business gives you access to a secure financial facility. Depositing your money in a bank ensures that your money and your account are protected by numerous layers of security features to prevent criminals from accessing it. 

Additionally, your business savings account will be covered by the Philippine Deposit Insurance Corporation (PDIC) for up to Php 500,000. A guarantee that your money and your company are protected. 

Reaping the Benefits of a Business Savings Account

By now you must already know that a business can have a savings account and that it can help you manage your company much better. 

From monitoring your expenses, growing your assets, and disbursing payments, a business savings account is the perfect tool for business owners everywhere. All that’s left is to find the right provider and service type.

RCBC’s cash management feature allows you to take advantage of any business opportunities while staying on top of your company’s receivables and payables. This tool was designed to help business owners succeed in managing their company’s finances. 

Apply for a business savings account with RCBC today and use the cash management feature for your company!