Proper finance management is mandatory for running businesses in the United States (U.S.). and beyond. Entrepreneurs like you should keep in mind that personal finances should be separated from business-related finances. This can be done by setting up and managing a separate business bank account.
For starters, one needs to pick the right bank account for their business needs. Are you an entrepreneur who wants to select the best bank account for your company’s needs? Continue reading below to find out different steps that you can follow.
Identify Your Banking And Financial Needs
In picking the right business bank account, you need to take into consideration the different financial needs your company has. These include but aren’t limited to online banking, the maximum number of daily transactions, international payments handling, interbank finances, and so on. Bank A works differently and has different banking policies than Bank B and the others.
Make sure that you prepare a list containing the different needs your bank has and use it to vet different banks and their service offerings. Suppose you’re a non-U.S. resident but run a business in America. Find a bank that allows the registration of a business bank account for non-US residents and will accommodate your financial transactions with little to no hassles.
Check The Different Business Bank Account Types Available
There are various business bank accounts you can open for your company. Each option is best for given circumstances. Understanding each one enables you to make an informed decision.
Common business bank accounts are:
- Checking accounts are best for daily transactions like deposits, withdrawals, and transfers.
- Savings accounts are ideal if you have money to spare and want to grow them. They act like your personal savings account. Your money will grow through interest rates. The ease of accessing the money isn’t similar to a checking account, although it depends on the terms. The agreement might be to make two withdrawals in a quarter or once every two months.
- Certificate of deposit hasthe same purpose as a savings account. Nonetheless, the interest rates are higher, and there’s minimal access to the money saved. You’ll face penalties if you withdraw the money before the agreed period ends.
Look At The Associated Banking Costs
Most banks charge certain fees concerning different banking account transactions and others. The charges you’ll likely incur are withdrawal fees, bank-to-mobile transfers, debit and credit card swipes, and maintenance fees.
At first glance, these banking charges don’t seem to be a lot. Yet fees from certain periods lumped altogether can come out in large amounts. Overall, it’s best to choose a business bank account with minimal to no transaction and maintenance costs.
Check Mobile And Technology Integration
Technology is on the rise. With the convenience technology brings to the table, you ought to take advantage of it. One of the conveniences technological advancement offers is the ease of doing banking via mobile banking applications. Choose a bank account that comes with integrated mobile banking capabilities.
Further, make sure that you pick a business bank account that you can easily integrate with your online payment systems. Suppose you have a shopping website. Make sure that your selected banker offers seamless online banking and financing integration with your site’s payment systems.
Check The Bank’s Reputation, Size, And So On
Vetting a bank is important if you’re trying to find the perfect bank account for your business.
The first aspect to check in a bank is its reputation. What does the public have to say about the services they’re offering? You can find this information online. A general web search of the bank’s company details will give you this information.
Alternatively, or in addition to, visit the bank’s official website. Most banks have a review section, containing feedback from their previous and current clients. Watch out for the negative comments there; you don’t want to settle for a bank known for poor services. You might fall victim to the same, and your business ends up suffering.
Banks have different resources and operating strategies – some are meant for individuals while others are for businesses. As a business owner, choose a bank that’ll favor your business as well as accommodate its growth. One aspect that can assist you in vetting whether the bank is ideal for your needs is its loan services. Financial assistance is something you’ll likely need while operating your business. Do their terms favor your business operations and their financial needs? If the answer’s ‘yes,’ then it’s the perfect bank for you.
Conclusion
Finding the right bank account for your business is important. The right business bank account will help you handle your business transactions easily and efficiently. The discussion above details how to find the right business bank account. Therefore, if you plan on running a business, start by getting a business bank account with the help of the insight herein.
