Food For Thought: Business Account versus Personal Accounts
If you are a webmaster who makes money from selling a product, or from advertising, then the fact is that you are essentially running a small business. Sure you might not be the next Richard Branson just yet, but the fact remains that you will still be making money, helping to fuel the economy and engaging in an entrepreneurial pursuit worthy of some credit.
As such then, it’s time you stopped thinking about your website as a hobby, and started thinking about it as a serious enterprise – and that you started to seriously treat it that way. The sooner you start to treat yourself like a successful businessman, the sooner you will actually become one and the sooner you’ll start to turn a large enough profit to go full time.
One example of a way you can start to give your web business more priority is to set up a business account, which will make you a real financial entity and give you a lot more clout and kudos. But there are many more benefits to having a separate business account for your website too. Here we will look at what those are…
Anonymity: You don’t necessarily always want to advertise your name and who you are when you’re running a website or handling any other kind of online business. For instance if you are currently still working for another company then having a website might make it look like you’re thinking of leaving or just aren’t satisfied at work which could get you into trouble. By having a business account you can receive payment and handle transactions without letting anyone link it back to you.
Backup Accounts: If your Google AdSense account is currently in your name and you don’t have another account, then you can get into trouble if they suddenly decide to ban you (which many people have reported happening without warning). Likewise if you sell apps and get banned from the Play Store Developers this could quickly result in your business disappearing. On the other hand though if you have multiple accounts then you can always switch to one of those, or you can have multiple open to begin with so that you’re not so vulnerable to change.
Tax: If you earn a significant amount online then you will need to fill out a tax return to declare it. Now if your money is filtering in from all kinds of different sources this can be very frustrating and take a lot of time. By having a single business account where all your business transactions go through, you can find out your earnings and what you’re going to claim back within moments by looking at just one statement.
Authority: If you don’t have a business account then this won’t prevent you from doing business with the heavy weights, but it certainly won’t help. By asking someone to send their payment to an account that lines up with your business name, you will come across far more impressive and they will be assured that they’re doing business with a professional outfit.
Tom Koh is an avid blogger who writes informative articles on the current trends followed in internet marketing. He has also written articles to improve website pagerank which helps one to augment their business.