A Guide To Business Checking Accounts
Whether you are considering starting your own business or you’re an existing business owner who has banked with the same provider for a number of years you should regularly be shopping around for the best business checking accounts. There are always deals to be found and you can save yourself time and money by finding a better banking partner and checking account. Here are some tips to consider when looking for a better business checking account.
What Services Do They Offer?
A great bank for a business checking account will provide you with little extras that make the day to day running of your business easier. Nowadays its more about the phone and online services offered by banks rather than the services they offer in store. On the other hand will you be happy woring with a bank that doesnt have any physical presence in your neighbourhoud? When considering different business checking accounts here are some of the minimum services you should expect.
- Cash and deposit checks
- Withdraw cash and get cashier’s checks
- Access to customer service
- ATM access
- View balances and recent activity online
- Online bill payments
- Manage employee debit cards
- Access to mortgage, lending, and other services
Transaction and Cash Limits
Some banks will promise to wave transaction fees, up to a certain number, so check with potential banks about the limits they impose. For instance, some banks will not charge you fees for withdrawing money until you have reached a certain amount per month. Most will also impose limits on the number of times per month you can deposit money without incurring charges. Even small business rack up a lot of individual transactions per month – ranging from deposits, withdrawals, transfers, bills payments and payments from 3rd party credit card processors. You should therefore look for a bank that has either no limits on the number of transactions you can make or a generous number of free transactions. The goal being to save money by reducing the amount of bank fee’s you pay each month.
Monthly Fee’s
The cost of running a business checking account can vary wildly between traditional banks and newer online providers. Some banks will charge thousands of dollars in transaction fee’s while others will charge nothing. Similarly, some banks will charge a monthly fee for having your account. This is more likely to be charged if you only hold a small amount of money in your account and rarely use it. If your business is very small, an online bank if probably your best bet. If you are a larger company with lots of transactions you might need the convenience of physical branches.
The size of your business is probably the single biggest factor to consider when looking for the right business checking account. Small businesses are often better suited to online banks, unless they are dealing with cash deposits. Larger companies can probably benefit more by working with a larger bank and negotiating the fee’s they pay for the services they receive.
Ease of Set Up
Every business runs better and earns more if your processes run smoothly and efficiently. Once you have your bank account set up, you need to coordinate with them to make sure that your accounting software and other services can work well with their systems. You will need to look at your accounting, bills payments and invoicing systems.
Debit Cards
As your business grows and you employ more and more people you find yourself needing additional business debit or credit cards to allow your staff to pay for things as they go about their jobs. Most banks and credit unions will offer you credit and debit cards that come with cash advance and purchase limits for those additional cardholders. This can provide your employees with what they need, and also protect your business from theft or misuse. If you have an agent who helps you with your banking requirements ask them to look into the various options available to you or do your own research online. There are a multitude of options out there and you’re sure to be able to find one that suits the needs of your growing business while protecting you against loss or theft.
At first glance, most banks seem to offer very similar checking accounts with the same list of services and benefits. There are however differences in what they offer and most importantly how they charge for their services. The banking industry is highly competitive and they regularly offer special deals to entice you to switch over to them. It’s important that you understand both your current requirements and where your business is going in the future. If you are running a small business and plan to keep it that way a local bank or credit union might offer you the best solution for your needs. If however, you have a fast-growing business you might need to look at a different bank, one that can adapt to your changing requirements and adjust their offering as your business grows.
Disclaimer: Our service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions via impartial information and guides. Where appropriate, we may introduce partner companies who can provide services relating to financial products.