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CONSUMER NEWS | SEPTEMBER 29, 2026 |
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Whether you're starting a business or strengthening an existing one, financial resilience comes from consistent habits like keeping accurate records, selecting appropriate banking services, evaluating financing options, and maintaining ways to securely receive customer payments. The updated Money Smart for Small Business program from the Federal Deposit Insurance Corporation (FDIC) and U.S. Small Business Administration (SBA) offers practical guidance on banking services, cash flow, risk management, profitability, and financing.
This month's article explores some strategies to consider as you manage and protect your business finances.
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Are your business finances clearly separated and easy to track?
Start with good records and a clear separation between business and personal funds. IRS Publication 583 recommends opening a business checking account and keeping it separate from your personal checking account. The IRS explains that good records help you monitor the business and prepare financial statement and tax returns.
For example, a business account can also make day-to-day operations easier, including accepting customer payments and allowing employees to perform authorized banking tasks without accessing your personal account.
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How does FDIC insurance apply to business accounts?
All deposits owned by a corporation, partnership, or unincorporated association at the same bank are added together and insured up to $250,000, separately from the personal accounts of the owners or members. Note, however, that deposits held in a sole proprietorship (or “doing business as”) account are insured as the sole proprietor’s single ownership account, combined with any other single ownership accounts (e.g., personal checking or savings accounts) the sole proprietor has at the same bank. Visit fdic.gov or call 1-877-ask-fdic for more information about how business accounts are insured and other information about FDIC deposit insurance.
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Do you know where to turn when your business needs money?
Your financing options can depend on the age of the business, its credit history, cash flow, and how much money you need. Maintaining accurate personal and business credit information can help you prepare before you approach a lender.
For eligible businesses, SBA-backed financing may be one option. The SBA 7(a) program can support working capital, equipment, real estate, and certain refinancing options. SBA Microloans provide up to $50,000 to support eligible startups and growing businesses. After a declared disaster, SBA disaster assistance may be available to eligible businesses.
Eligible rural entrepreneurs may also want to explore United States Department of Agriculture Rural Development. Its Rural Microentrepreneur Assistance Program supports startup and growth through intermediary microloans of up to $50,000 for rural businesses with 10 or fewer full-time employees.
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How will you keep money from leaving your business through error or fraud?
Business accounts do not always have the same federal protections as consumer accounts. The Electronic Fund Transfer Act and Regulation E generally apply to accounts established primarily for personal, family, or household purposes. Review your business account agreement with your financial institution and report any suspected unauthorized activity to your institution immediately.
Fraud prevention and detection should also be a part of your business payment operations. Criminals may steal or alter checks, or impersonate a vendor, employee, government agency, or other trusted contact. The U.S. Postal Inspection Service and American Bankers Association Foundation offer guidance on protecting businesses from check fraud, while the Federal Bureau of Investigation (FBI) recommends independently verifying new or changed payment instructions before sending funds. The FBI also recommends using multifactor authentication before sending any funds electronically and using appropriate diligence before using unexpected links, attachments, or requests for account information. If a fraudulent transfer occurs, contact your financial institution immediately and report business email compromise to the FBI's Internet Crime Complaint Center at IC3.gov.
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