Starting a small business is one of the most exhilarating and challenging paths you can take.
At the core of that journey is obtaining a business bank account, a necessity to keep your finances in order. More importantly, a well-managed business account is the hallmark of rapid financial growth and stability. So, how can you secure the best business account when so many options are at your disposal? Here are some essential elements to look out for before opening one.
1. The Type of Account You Need
Before you even start looking for a business bank account, you must know exactly what kind of account you want to open for your business. For most small businesses, the search will come down to either checking accounts, savings accounts, or a merchant account if you accept credit card payments. Although savings accounts would not be your first pick, businesses that want to separate their money for future growth or emergencies tend to take interest in them.
Remember that business accounts are different from regular personal checking and savings accounts. So, when selecting an account, look for services and terms that support your monetary needs while considering the features and charges. Luckily, many business checking accounts come with services like invoicing tools, business lines of credit, debit and credit cards or enhanced fraud protection.
2. Charges and Fees for Transactions
One of the most important elements to look out for is the fees associated with your business account. As a general rule, you might confront a number of service fees based on the account you choose. For example, most business checking accounts come with a monthly service fee. Beyond that, some charge you for additional services. This includes taking cash out at the ATM. You might likewise incur charges from wire transfers from your account.
That said, several banks will allow a waiver of fees based on your business. This includes maintaining a minimum account balance and using a particular number of services in a statement cycle. Don’t forget the sign-up promotions banks use to lure in small businesses. It is not a bad idea, but make sure you weigh the benefits against the cost. Chances are, if you are a new business or on a tight budget, you’ll want to find an account with little to no charges.
3. Access to Online Banking Tools
You will need a mobile app to help you keep track of your finances on the go as you work. You want to make sure the bank has a mobile app and that it is top quality with positive reviews. Be sure to use a bank that sends notifications so you know when anything in your account changes. Most importantly, you can transfer funds and deposit checks.
Some financial technology companies like Bluevine have an online presence where you can manage your account from anywhere at any time. It’s best to ensure your business bank account has mobile banking so you can transact without being physically present at the office. If you can see your transactions in real time and automatically generate invoices, you are going to have more time on your hands to focus on growing your business.
4. Customer Support and Services
Whether you have a question about a transaction or a problem with one of your payments, it’s essential to have reliable customer support service. Select a bank that has good customer service and a quick response time. It’s better if you can get them 24/7 and in multiple ways, that is, phone, email, or live chat. If you are having to deal with problems and issues with your transactions, there is nothing bad with having an ally by your side.
5. Integration with Your Accounting Software
Properly handling finances is a crucial aspect of a business. You will have a much easier way to do this if you have a business bank account that is integrated with your accounting software. Syncing your business transactions to your accounting software will save you time and stress in entering data manually, inevitably avoiding errors that may be costly to your company.
Some banks come with integrations already enabled, while some have third-party applications to connect to your accounting software. Before registering for your business bank account, find out if this service has already been added and how it is going to help you handle your finances.
6. Bank Reputation and Stability
While it is not always the most important aspect to consider, you want a bank that has a good reputation and financial standing. As a small business owner, put your money in a bank that will be there for you in times of need. Look up the bank’s history, what its customers have to say about it, and what its financials are so you can make an educated and safe choice.
When you’re ready to go for a business bank account, be prepared. Compare options and keep the above considerations in mind. The right banking option will help you set yourself up for business success. With options like Bluevine offering low fees, easy online access, and excellent integration, the future of business banking looks brighter than ever.
