DID YOU KNOW...?
Did You Know that the most effective number of "open" bank related accounts most businesses have in use is 3?
1. An Operating account.
This account is used for employee payroll and revolving monthly vendor billings.
2. A Cash Reserve account.
Utilized upon need for non vendor and non payroll expenses (also used for overdraft protection when applicable).
Since this is a reserve account, you would want it to earn a little interest if possible.
Account 1 & 2 make up your "Working Capital" accounts.
3. A Tax Reserve account.
This account would be utilized for monthly, quarterly or year end federal, state and local tax payments.
Approximately 20 to 25 percent of all business revenue (paid to company) for services completed/products sold would be deposited in this account.
Since this is a reserve account, you would want it to earn a little interest, if possible.
Keep in mind, business and personal related expenses should "not be combined" in the same account unless proper record keeping is administered by company representatives.
Continued success to you and your business ventures. We are here to assist as your administrative partner!