Small businesses have different needs than individual investors, and banks have created a wide range of financial services and products to accommodate those needs. Consider these factors when choosing a business checking account to maximize one of your most frequently used financial tools.
Considerations When Choosing a Business Checking Account
Minimum balance
Some business checking accounts require a minimum balance for free checking. If your account dips below the balance, you’ll pay additional fees each month. While at first glance those fees don’t seem terribly expensive, they can quickly add up if you’re not careful.
If maintaining a minimum balance isn’t difficult for you, you can choose your bank based on other factors. New ventures and those who anticipate large balance fluctuations will want an account that offers free checking regardless of the balance.
Access to funds
How quickly can you access deposits? And how easily can you conduct banking over the internet?
Online bill payments, integration with your accounting software and bank transfers may all be part of your financial activities. Most banks do offer easy online banking, but check for hidden fees or restrictions.
Withdrawals
Do you anticipate needing to withdraw funds regularly? Look for unlimited withdrawals and transfers if you anticipate higher than normal volume in your account. Some commercial checking accounts charge additional fees for cash withdrawals. Be aware of the fine print in your banking agreement.
Volume
How many deposits do you anticipate making each month? If you anticipate a high volume, consider a commercial analysis account. These accounts accrue interest or credit on the account, and while not much, every little bit helps a growing business.
Hidden costs
Is there a monthly service charge?
How much does your bank charge to print checks, put stop payments on checks and other services?
Although you might not think you need all of these services, you never know when you will need them. It’s a good idea to compare fee schedules among several banks when considering places to open a business checking account.
What About Online-Only Payment Services?
Some small businesses try to rely solely upon online services such as PayPal and other internet banking options for their business needs. While many companies do benefit by offering these alternative methods of payment, relying solely upon a service like PayPal limits your options.
Some business vendors may not access payments from them, and you won’t get access to cash or other services as you do with traditional business checking accounts.
For most small businesses, having a traditional business checking account is the best options, with other banking and online payment processors added as needed to best service their customers.
Choosing the best business checking account may not be top on your to-do list, but it should. When you choose a bank that fits your business needs, you’ve gained a trusted financial partner who can help your business grow.
How Can BlueStone Services Help
BlueStone Services is here to help guide you when making important financial decisions, such as choosing a bank. Contact us today to get started.
