Keeping your business and personal finances separate is one of the best advice you can use no matter what kind of business you are in, whether e-commerce, affiliate, dropshipping or the good old or brick-and-mortar shop.
Opening new accounts under your business’s registered name is the best way to start. The great thing is plenty of this stuff about running and opening an e-commerce site can be done only, including opening accounts.
But for that to happen, you need to know what kind of accounts are the right ones for businesses. Here is a guide to these accounts as well as other banking components you need to know:
- Business Checking Account
All your business finances need to go be run through using one main checking account. Any and all of your business revenue must be deposited into this account, and any expense for your business must be withdrawn from it. This would make things easier for you, the business owner, as well for your accountant.
- Online Payment Platforms
From the ever-popular PayPal platform that first ruled the world of online payment, now you have plenty of other options to choose from. PayPal, Stripe, Due, Apple Pay, Venmo, and Google Wallet are great to have in your e-commerce site. Two or three online payment options are a must-have, along with the option of paying with a VISA or Mastercard. For this, you will also want a business account tied to your e-commerce website.
- Credit Card
As credit cards are preferred payments by suppliers, credit cards are preferred payment methods by your customers. In that same mindset, you should also have a business credit card for the business expenses as well as for your inventory purchases for dropshipping.
There will be plenty of purchases that you will make from your suppliers, and use a credit card connected to your business account enables you to gain some serious rewards. Look around for cards that give you rewards for things like travel, online transactions, and certain types of merchandise that you will most likely be purchasing more often.
Collecting Sales Tax
Of course, taxes are something that you must know. You will need to collect sales tax if you fall into this category:
- The state your business is operating from collects sales tax
- An order is made by a person living in your state
Orders made by people residing in other states, and even in states that have your own sales tax, you do not need to collect the tax. These tax laws for online merchants are beneficial, especially if you are new to e-commerce, and your business is considered still small. You can also have the option of hiring a remote CPA to help you with your taxes or use tax software if you have the basics of taxes and accounting. Read this article to find out more.
Local Business Licenses
Businesses need business licenses, and these licenses need to be renewed on a regular basis. For dropshipping businesses, the requirements may differ, and these will likely involve operations from home offices. When starting your dropshipping business, look into what your local laws and regulations require, if anything.