Whether you are starting a new business or you are looking to make some business finance upgrades, it is essential to ensure your bank accounts are optimized for your needs. To do that, you need the right business checking account.
Here are some criteria to choose the best checking account for your business needs.
The first place to look when choosing a new bank account is the essential services offered. In-branch, you should be able to deposit cash and checks, make cash withdrawals, and get cashiers checks if needed. You should also have easy access to customer service and support, an ATM, and other essential banking services.
Online banking is the core of financial operations for most businesses that are not cash-based. You should be able to view balances and recent activity, initiate transfers to other accounts, access online bill payment, and depending on the needs of your company manage employee debit cards.
In addition to regular banking needs, you may want your business accounts at the same bank as your personal accounts. This gives you access to mortgages, lending, and related services.
Monthly maintenance fees
Once you find a few banks with the services you need, it is time to turn to the fees. Business banking fees range widely from free to thousands of dollars per month. As your business becomes more complex, it is reasonable to expect some fees. However, you can limit those fees and keep them as low as possible choosing the right bank and checking account.
Cash and transaction limits
Some banks offer a no-fee experience up to certain transaction limits, be sure to look out for those types of restrictions when opening a new account at any bank or credit union. The most common limit to run into is a cash deposit limit per month with no fee, as depositing cash requires a teller and is cost-intensive for a bank branch. The fee is typically based on the total amount deposited per month.
The next set of fees you’ll run into is a limit of total deposits or withdrawals, including online transfers, bill payments, and deposits from 3rd party credit card processor. Your transaction volume can add up fast if you make a lot of sales each month, so look out for low limits.
Once your business bank account is up and running, it needs to work with your accounting and budgeting software and any other services you choose. The most common of these services is Quickbooks, but there are other financial systems to think about as well.
Whatever services you use, the ability to send and receive unlimited ACH transfers is helpful, particularly for online businesses.
The financial performance determines your business’ success or failure, and a business checking account is the core of any business’ finances. If you make the right decision, you’ll be free to focus on running your business instead of running your bank account. That is something any business owner can appreciate.