Shopping for a Business Bank Account? Read This First.
Opening a business bank account might not feel like a big deal - but it can save you a ton of time (and headaches!) if you choose the right one from the start.
Before you sign up for the first “free” account you see, here’s what to look for:
Keep it together but separate.
When looking for a business account, consider using the same bank you use for your personal banking. Business and personal funds should never mix however, keeping your banking under one roof makes paying yourself, moving owners draws, or reimbursing business expenses a breeze by making transfers between your business and personal account on one website or app. Another benefit - many banks will waive their monthly fees if you have a personal account and/or you meet their threshold requirements such as maintaining a combined balance.
Read the fine print.
Watch for sneaky fees, minimum balances, and transaction limits. That $200 bonus? Although it sounds great, it may not be worth it if you are going to be nickel-and-dimed every month.
Tech + Access Matter.
Look for a user-friendly app, smooth online banking, and integrations with your bookkeeping software. And while you are at it, double check that the account offers view-only access for your bookkeeper or accountant. If not, you will be stuck downloading statements and chasing down information every month. Make your future self happy and be sure to confirm this one. You will thank yourself later!
Plan ahead.
Will this account still work for you as you grow? Some accounts are great for just starting out but fall short as volume increases. Example: You open a free account with a transaction limit of 150 per month and now you are processing well over 200 transactions for client payments, software subscriptions, and contractor payouts. Now that “free” account is costing $50/mo. or your account doesn’t allow multiple users but you need secure access for your bookkeeper and the new Business Manager you have added to your team.
Bottom line: This isn’t just about opening up a bank account. It’s about setting up the foundation of a system to manage your money. The right bank account will make it easier to stay organized and to manage your money as you grow.
Not sure what you need? I help business owners choose banking and back office systems that support the way they work. If you are feeling stuck or overwhelmed, feel free to reach out.
- Kimberly
Main Street Bookkeeping