Bank Accounts & Credit Cards


“Everyday is a bank account, and time is our currency.
No one is rich, no one is poor, we’ve got 24 hours each.”  

~ Christopher Rice


The first financial structures needed when starting your business are your bank accounts and a credit card. These should be completely separate from your personal accounts so things don’t get confusing for you at tax time.

Business Bank Accounts

I recommend having at least three accounts set up separately from your personal accounts but use a system that makes sense for you.

One chequing account for general business purposes

This is the account that all your income goes into and any business related expenses come out of.

If you are Sole-Proprietor you are not required to set up formal “business accounts” with your bank but instead you can use “personal accounts” as your business accounts. If you are incorporated, you are required to have a designated business account in your business account as your business account. Speak to your bank and your accountant to determine the best arrangement for you.

One savings account to segregate taxes as received

Create a system for transferring the GST you’ve collected over to a separate account so you do not get tempted to spend it or feel like you are making more income than you actually are. This would also be the account that you would transfer your CCP contributions to.

Whatever you do, don’t leave this money in your general accounts. IT IS NOT YOUR MONEY!

One savings account for your vacation pay

I recommend having a separate account that you transfer a certain amount over to on either a weekly or monthly basis. This is the account you will use to pay yourself when you take time off.

Business Credit Cards

As with your bank accounts, it is important to keep your business and personal credit card expenses separate. Since often you are required to make purchases with a credit card for online purchases, I recommend applying for a separate card, or designating an existing card as only business expenses.

Action Item: Determine the banking and credit card structure that you are going to use for your business.  

NEXT >