A business checking account can be used to manage business finances. For example, this may include:
Paying suppliers
Depositing payments from customers
Paying your employees
Making necessary purchases for the business
Covering operating expenses
Making tax payments
Personal checking accounts, on the other hand, are designed for personal use. In other words, this means things like:
Depositing your paychecks
Paying personal bills, such as the mortgage or utilities
Making purchases with a connected debit card
Transferring money to a linked personal savings account
Withdrawing cash at the ATM
Sending personal payments to friends and family
Not only do bank statements show lenders how you have managed your revenues and expenses, but they can also be used to predict future cash flows. They will be looking for expenses like recurring loan payments, rent checks, and operational costs to understand your monthly outgoing cash. Deposits will be used to define monthly incoming cash.