A business emergency savings account is to your business what your personal emergency account is to your personal life. In personal finance you save for things like the roof leaking, job loss, medical emergency and more to avoid taking on toxic debt. Having an emergency fund allows you to have the cash needed to cover anything life or business throws your way so that you aren't left with a high interest loan, or a revolving credit card balance that will suffocate your finances for 5-10 years. An emergency fund can help provide you with a backup or buffer in the event of unplanned business circumstances. For instance, covering payroll during a slow season, replacing a damaged sales order, or making unplanned but required purchases. In sum, it can never hurt to regularly save even just 1-5% of profits to contribute towards an emergency fund to save yourself and your business when you need it most. Emergencies are certainly not expected, so you have to account for that.