As many businesses are born everyday, there is a growing demand to help manage their money.
Now these businesses aren’t just startups but also companies, schools, financial institutions and what have you.
In this post, i will be putting you through the advantages of having a business account instead of a personal account and how to open one especially in Nigeria.
But before i start, i want to clear something here, irrespective of the size of your business, you should have a business account. This is for accountability purposes among others.
It has been said that businesses with business bank accounts perform way better than businesses with personal accounts because of the level of organisation it proffers.
SOME OF THE IMPORTANCE OF BUSINESS BANK ACCOUNT OVER PERSONAL BANK ACCOUNT
- ACCURATE TAXING AND DEDUCTION
As a business owner, you need to have a business account separate from your personal account because the profits gotten from your business has to be fully accounted for.
Businesses that are accountable tend to achieve more success.
Having a business account shows how serious you are involved in the business. It shows you have a sense of mission and you are not being a cheat or a fraudster.
It shows that you are capable of handling a business and you are being professional about it.
3. ACCURATE TAXING AND DEDUCTION
Owning a business account does a great deal in making sure your taxes are done accurately.
Although there are many banks in Nigeria and each of them may have their pattern of operations, they still have a basic way of opening a bank account .
Most of the banks give access to their customers to make different transactions on their account.
These transactions include transferring money from their account to another account, recharging their mobile phones, multi currency account and so on.
For business accounts, you can manage expenses, manage employees pay, plan your budget and many more.
TO OPEN YOUR BUSINESS ACCOUNT, FOLLOW THESE STEPS BELOW
1.Approach a bank
The first step in opening a business account is to approach the bank.
Every bank has its own additional feature given to every account holder so locate the one you prefer and approach the bank.
2. Get your bank credentials in order
After selecting the bank you want to patronize, one other thing you need to find out are the requirements the bank needs to open a bank account for your business.
Most of the time for a business account, one important thing to bring along is your tax ID number.
3. Provide Business license
At the point of registration, an official license of the business after the business registration must be presented . This document is a pointer to the fact that the business is valid and legit.
4. Provide your tax ID number
There is also an important requirement which is your business name registered in Nigeria. This is usually termed DBA “Doing business as” .
THE DOCUMENTS MOSTLY ASKED BY BANKS FOR BUSINESS TO HAVE AN ACCOUNT ARE :
Resolution from the Board of Directors/Proprietor(s) authorizing the opening of the account and approving the account signatories.
- A company seal.
- Certified Memorandum and Articles of Association (MeMat).
- Completely filled corporate account opening form signed by the company’s designated signatories.
- Certified true copies of incorporation documents (Form CO7).
- Residential address proof of signatories and directors.
- Passports photograph of the signatories.
- Bank Verification Number of directors or proprietor.
- Legitimate identification document of the directors or proprietors, such as international passport, driver’s license, etc.
- Tax Identification Number (TIN) for the company.
- Utility bill of business addresses such as the Power Holding Company of Nigeria (PHCN), water bill, Lagos Waste Management Authority (LAWMA), etc.
- Special Control Unit Against Money Laundering (SCUML) registration where applicable.
- Special requirements such as business permit, residence permit, etc. for foreigner nationals.
- 2 duly filled reference forms by corporate account holders