As a business owner, it’s pertinent to make sure that your finances are properly managed. One of the best ways to do this is separating your personal and professional finances with the help of a business checking account. When selecting a business checking account, it’s essential to find a bank that will help you make the best decisions for the future of your company. Below are criteria to consider when selecting a business bank account.
1. Consider Services Offered
When you look into getting a new bank account, start your research by reviewing the services offered. This includes identifying what features your bank of choice offers in-person, online, and any additional services. Unless your bank is solely online, a bank’s in-branch services should include depositing checks and cash, making cash withdrawals, and getting cashier’s checks if possible. Moreover, you should be able to access customer support and customer service (in addition to other banking services).
Online banking services should also include the ability to review recent activity and view your balances. Additionally, online banks should allow businesses access to manage employee debit cards and pay bills online.
While it’s important to keep your personal and professional finances separate, experts like Polk Partners share that it may be helpful to use the same bank for both your business and personal accounts. This way, you and your team will have access to lending, mortgages, and similar services.
2. Review Monthly Maintenance Fees
Monthly maintenance fees are another detail to consider when it comes to selecting a bank for your business. After reviewing what services the bank offers, it’s crucial to thoroughly review the maintenance fees you’ll be expected to pay each month after opening the bank account. No two banks are the same; they charge varying fees for maintaining a business banking account. Choosing the right bank will help you avoid higher fees.
If you’re on the hunt for lower fees, the best accounts are those that don’t charge businesses for basic banking needs. Many online-only banks allow their clients to open a business checking account at no cost. On the other hand, larger banks may charge a monthly fee. However, this fee may be waived under certain conditions, typically if businesses keep a minimum amount of money in their accounts at all times.
3. Determine Transaction Limits
While you may hope to avoid maintenance fees for your business checking account, it’s also a good idea to monitor the limits for cash and transactions. Though certain banks charge fees for transaction limits, this is an important factor to consider when opening your new business account. It is common to find that there is a monthly cash deposit limit. Based on the bank, you may have to pay an additional fee to deposit money once you’ve reached the monthly limit.
Another set of limitations to consider are those pertaining to withdrawals and total deposits. This includes online transfers, deposits from 3rd party card processors, and bill payments. Businesses that make a significant amount of sales every month should select a banking account with higher limits to ensure they avoid any unnecessary fees.
4. Get Flexible Debit Cards
Businesses with only one employee may not need to search for banking accounts with flexible debit cards. However, if you expect to take on more employees, it makes sense to look into banking accounts that have the option of employee debit or credit cards. Most banks that work with businesses provide their clients with the option of adding multiple cardholders with optional cash advances and a purchase limit for these cards. This type of limit allows employees to handle their business responsibilities without giving them unlimited access to your business’s bank account.
If you’re considering giving your employees debit or credit cards, keep this in mind while you search for a banking account. Remember that some banks don’t offer this feature while others don’t charge for it.
5. Look for Easy Integrations
Once you have your new business account up and running, you’ll need to integrate it with any budgeting and accounting software that you already use. Experts at Polk Partners remind their clients to do their homework and search for banks that are compatible with popular financial software and systems before opening their business bank account.
Banks that offer easy integration will make the process of switching over to a new business account easy. As you consider which integrations are the most helpful, look out for banks that offer unlimited ACH transfer, as this is particularly helpful for online businesses.
6. Trust Your Intuition
Most banks’ checking accounts are relatively similar. While some features and fees are distinctly different at certain banks, the future goals of your company should help you finalize your decision when choosing a bank to open a business account at. Experts point out that small business owners aiming to keep their companies the same size will probably do well with a local bank. Alternatively, businesses that have their eye on scaling up should select a bank that will make this process as simple as possible.
7. Regularly Review Your Banking Needs
While it’s important to choose a bank that fits your current needs, businesses grow and you’ll need a bank that grows with you as well. Even if you find a bank that you’re happy with now, it’s good practice to regularly review your banking needs as your company changes. Therefore, take the time to assess your company’s banking needs every few years to make sure you’re still getting what you need from your bank.
In the event that you need additional services from your bank, you may need to upgrade. In addition, if you find that another bank offers more competitive rates, this may be an indication that it’s time to switch to a different bank.
The right business bank account will help your company make smart decisions for your present and future financial needs. Use this guide to help you make the right choices when selecting a bank account for your business.
