If you are ready to get serious about your small business, you will want to open a business bank account to manage your finances, according to businessnewsdaily.com.

However, with so many options available to business customers, it can be confusing to set up a new account. Small business experts shared some of the common mistakes business newbies make with their accounts, and how you can avoid doing the same when opening yours.

Incorrect or missing information at account setup: New small business owners and entrepreneurs frequently make the mistake of bringing the wrong paperwork to the account-opening appointment. Each bank or credit union may have different requirements; so when you book the appointment, ask the banking officer exactly what you will need to bring to the meeting.

“Don’t worry about assembling a great deal of business documents,” says David Bakke, small business specialist at personal finance website Money Crashers.

“In most cases, all you need is your tax ID and other general information.”

Not having a designated business account: Thinking about running your new business from your existing personal current or savings account? This could be a big mistake, because it is difficult to track business finances when they are combined with household finances.

Depending on the size of your business, it may be wise to open individual, separate accounts for revenue, collected sales tax, estimated income tax and payroll. Doing so will keep your business finances organised and make life easier at tax time.

You will be a lot better off by segregating your revenues and expenses from your personal finances.

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