For any company, opening a business bank account is a big deal – even though it’s not something every company needs to do, it does serve as a significant milestone in terms of progress and growth.
It may seem like nothing more than simply signing up and moving money around, but there’s actually a lot more to it than that – business bank accounts have a great deal to offer companies in terms of services.
For new businesses in particular, these types of additional features and services have the potential to make a massive difference in terms of contributing to the management of finances – tracking income and expenses and even planning for growth.
There are plenty of important features of business bank accounts for startups, all of which contribute to helping them run more smoothly.
Lower Monthly Fees
Starting and running a business involves loads of expenses – so much so that it can be difficult to manage and keep track of. Of course, that means that if there’s any way you can keep costs down, you’re definitely going to want to do that.
Business bank accounts tend to charge lower monthly fees (if any), especially for new businesses or accounts that have lower transaction volumes – it’s all relative.
When you’re deciding on a business bank account, look for accounts that are specifically designed for startups or small businesses – they tend to come with fee waivers or even reduced costs that are there to help you out without inflicting massive charges on you.
In some cases, your bank may even completely waive your monthly fees if you’re able to maintain a specific minimum balance or if you make use of their other services. This is why it’s always a good idea to check this out closely when making account decisions as some options are likely to suit you and your business more than others.
Convenient Online Banking
Everything’s online these days (and available on mobiles), and the same can be said for business transactions and payments – thus, having a service that allows you to do things easily and efficiently online is an absolute must.
Good business bank accounts should allow you to check balances, pay bills, transfer funds and more from a mobile application on your smartphone or from your laptop. So, make sure you consider the bank’s applications and websites before you make a decision.
Multiple User Access
Unlike a personal bank account, business bank accounts offer multiple-user access. Even if you start off as a one-man show (so to speak), having an account that allow for multiple user access can be helpful if you plan on bringing on partners or an accountant in the future. It gives you options for scaling which is always a good thing.
Most business bank accounts allow you to decide on levels of access for different users and you can assign roles based on different people’s responsibilities which adds a layer of security and peace of mind.
Keeping Track of Expenses
Tracking your finances is always important, but it’s especially vital when your company is young and still growing. That’s one way a good business bank account can be super helpful – some accounts provide built-in business expense tracking that lets you categorise and monitor all your spending which can be really helpful when you get to tax season.
The best thing you can do is find an account that integrates with accounting software like Xero or QuickBooks – some banks even offer a direct link to these platforms which allows you to automatically sync your transactions and reconcile accounts without having to struggle with manual data entry.
Managing Cash Flow
Some business bank accounts offer account holders tools that’ll help provide insight into your spending patterns and trends in cash flow. This will help you see how you’re spending your money and even create predictions and forecasts based on cash needs. In some cases, you’ll be able to get automatic reports on a monthly or annual basis that’ll summarise you financial situation.
This can be incredibly helpful in terms of supporting professional growth and being able to identify where the company is doing well and where they might be room for improvement.
Gain Access to Business Credit
Whether you know you’re going to need it or just want to keep your options open, business bank accounts give you access to potential credit that can be incredibly helpful in fueling your business’s startup growth.
Normally, you’ll have access to things like business credit cards, loans or lines of credit. There are plenty of advantages to have a solid relationship with your bank, especially if they’re able to support your credit needs.
