Personal banking and business banking are two different things. Additionally, business banking accounts might differ significantly amongst banks. You may not want to use the same bank for your business accounts even though you have a fantastic relationship with them for your accounts.
You need the best business bank account available to you to take advantage of your business’s best features. Here are some frequent business banking errors small business owners can avoid, starting with choosing the appropriate account.
Account features
You can save money on costs by selecting a bank that provides items without monthly account fees. Choose a bank that can adapt to the changing needs of your business by being flexible.
Find a company that meets these requirements and has an easy-to-use, secure online banking system with the features you require. This platform should have an app version for your phone and be simple.
You’ll have an even easier time of it if you can locate a bank that offers only one type of business checking or savings account.
Authorizations
Many things fill the minds of small business owners. As a result, they frequently forget to establish check signing authorities in advance.
You probably want your business checks to demand two signatures if you have a partner or staff. If you desire this, you must choose whether the double signature is necessary for all checks or only for more than a certain amount.
When creating an account, if you don’t do this right away, you’ll have to do it later, which can be a nuisance.
Incorrect check orders
It is crucial to order checks with accurate account information. But this is frequently ignored.
A business owner will frequently place an order for new checks while specifying the incorrect company name. The business’s legal name is less regularly printed on checks than its trading name or DBA (doing business as).
There are crucial factors to remember if you wish to take credit card payments online. The business’s legal name must coincide with the name on the check if many credit card processors require a canceled business check. This reduces the possibility of online fraud and helps confirm that the company is legitimate.
Keeping monthly minimum balance
If your bank offers the benefit of no monthly fees, you often need to keep the minimum monthly balance necessary. Of course, not every bank demands this.
If you fail to maintain the minimum balance required by your bank each month, you risk incurring monthly fees. Keep your balance above the minimum so you won’t be penalized if it drops because of unanticipated costs or decreased income.
Keeping separate personal and business accounts
Opening a separate business banking account is essential as soon as you become a business owner.
You can start raking in the benefits by getting the best business bank account available. Your business will also benefit from funding opportunities by beginning a new partnership with a bank. Not only will you be able to begin a relationship, but you can also develop it to open the door to future business loans, financing for commercial real estate, or financing for equipment.
