Question

Eliza conner owns a small clothing boutique. eliza uses her per- sonal checking account for both business and personal needs. how would you convince eliza that she should open a separate bank account for her business?

A) Explain that having a separate business account can make it easier to track business expenses and income.
B) Highlight the importance of maintaining clear financial records for tax purposes.
C) Emphasize that a separate business account adds professionalism to the business.
D) All of the above.

Answer 1

Opening a separate bank account for her business would benefit Eliza in several ways. Firstly, it would make it easier to track business expenses and income. Secondly, it is important for tax purposes. Lastly, it adds professionalism to the business.

Step-by-step explanation:

Opening a separate bank account for her business would benefit Eliza in several ways. Firstly, having a separate business account can make it easier for her to track business expenses and income. This will help her keep accurate records of her financial transactions and determine the profitability of her business.

Secondly, maintaining clear financial records is crucial for tax purposes. By separating her personal and business expenses, Eliza will be able to easily identify and report her business expenses, which can result in potential tax deductions.

Lastly, a separate business account adds professionalism to the business. It demonstrates that Eliza takes her business seriously and is committed to keeping her personal and business finances separate, which can help build trust with her clients and suppliers.