If you run a movie website and only have one bank account that houses all of your personal equity, your website profits, and its purchases, you should separate the accounts as soon as possible. Running a movie website is a business and should be treated as such.
Advantages to splitting up your accounts
- Its easier to distinguish between your personal equity and your business equity.
- Tax time is made simplistic. With one account for your business transactions – especially if that account has its own check card and you make your business purchases with that card e.g. domain names, website hosting, shipping materials, logo purchases, newsletters, employees, Internet costs, telephone costs, etc. – you’ll have everything neatly in one account for your accountant to peruse.
- It’s safer. Keeping your business and personal accounts separate is a good idea, especially if your website business folds or you have to declare bankruptcy. If your funds are intermingled in the same account, all your funds are at risk, not just your business ones.
- Its a convenient place to have all of your affiliate profits sent to. You can see who paid you, when, and what amount.
As I said in the post: An Interest-ing Place to Keep your Website Profits, there are multiple location to store your movie website profits, including a high-yield bank account. A regular bank account – one that earns no interest – will suit your purposes just fine but why wouldn’t you want one that earns interest? Whatever type of bank account you choose, be sure to have a check card issued with it. That way all of your purchases will be drawn from that account and that account only. Bank of America has a check card that earns frequent flier points. Best of all, you pay no interest on your purchases with the card. Its a check card after all and draws from your checking account with each purchase. Check with your bank to see the different types of check cards your bank offers. You might be surprised.
If you are the small guy, a sole proprietor, you do not need a full-fledged business account, a regular account will do. Go paperless or have a college student account opened, and the monthly maintenance charge will be waived.
If you are monetizing your movie website, do your due diligence, make a few phone calls to your bank, and open up a account for your website (a second checking account). In the long run it will pay off and make your finances clearly and safer.