May is Small Business Month , an opportunity to recognize the impact small businesses have across our communities . Small businesses are the economic engine that moves our communities forward . And this month , Regions Bank is highlighting an important topic for small-business owners : Checking accounts .

Separating your business finances from your personal funds is a key step in the early formation of a small business . Compared with all you must manage to get your business off the ground , opening a business checking account may not seem like a priority — even more so when revenues are scarce , and you ’ re covering startup expenses with personal funds .

But don ’ t ignore this important step . A separate checking account for the business is essential :

• It separates your personal assets from those of the business .

• Payments made to your business cannot be deposited in a personal account .

• It simplifies the business ’ bookkeeping for day-to-day matters , calculating profit and loss and tax reporting .

Perhaps just as important , a small business checking account is the first step in your relationship with a business banker — a valuable connection as your company grows . When you require services such as credit , loans and cashmanagement expertise down the line , you ’ ll already have a strong connection .

DECIDING ON AN ACCOUNT Before you determine where you ’ ll be making your initial deposit , weigh the potential value and importance of several factors , such as :

• Debit card availability

• Access to a savings or other complementary accounts

• The ability to process customer payments via credit card or ACH

• Proximity of bank to your business

• The reach of the branch or ATM networks

• Minimum account requirements

• Fees on accounts and transactions

• Extent of online account access to facilitate transactions and record-keeping

Some of these considerations may seem excessive now , but your business and its banking needs will evolve . For example , if you plan to build a regional company with a transactional business model , a bank with branches or ATMs in multiple communities would be beneficial .

BEFORE YOU HEAD TO THE BRANCH Unlike opening a personal bank account , you ’ ll need to finalize some paperwork before you take the reins of your business checking account . Before heading to the branch , double check with a bank ’ s small business specialist to determine what documentation is needed to open the account . Based on the business , different documentation will be required . Once your business accounts are in place ( and the business can take payments and keep company finances separate from your personal funds ), congratulations , you ’ re in business !

No matter what stage your small business is in , Regions Bank can help with guidance and insights based on our experience . Stop by our Taylor Road branch or any Regions Bank to speak with a banker .

Stacey Davis Thompson , Vice President , Branch Manager at Regions Bank ’ s Taylor Road Branch