Proven Tactics For Finding A Bank For Your Business
As any accountant will advise, it’s important for business owners to keep their personal and business banking separate.
Separating your business expenses will make your annual tax preparation much easier, and ensure you claim all your deductions. But it’s also important to protect your personal assets should your business find itself in financial trouble.
Another excellent reason to have a business bank account comes down to professionalism. As a small business, the ability to write and cash checks in your business name—like bigger, well-established companies—makes a much better impression on vendors and customers.
The question, then, isn’t whether to have a business account, but what to look for when shopping for a bank for your small business. Here’s how to find the best small business banking package for you.
Identify your needs
Depending on your business, you may need very basic services, or a more robust banking package. A basic business account should offer the flexibility of a checking and savings account, a debit card, the ability to write and cash checks, online banking and employee checking accounts, if required.
Some businesses will, of course, want to seek out additional services, such as mobile banking, access to a company credit card, a loan or line of credit, and the ability to accept online payments.
A bonus most every business would benefit from is access to a small business advisor at the bank who can help manage and grow your business.
With these services in mind, make a list of what’s important to you, now and in the future. Then start researching the options.
Compare rates and fees
Take note: some banks charge a fee for every in-person business transaction. Others offer online banking packages at a low monthly rate. If you’ll need to visit your bank regularly to make cash deposits, or make frequent withdrawals, location may be a cost consideration. If you travel internationally, you’ll also want to look into fees for international checks, conversion rates, and charges for withdrawing cash from foreign ATMs.
The good news is that many pf the modern banks forgo wire fees & other traditional banking fees.
Bigger isn’t always better
If your business is new, and you haven’t established a credit history, a community bank may be a better choice than a large national bank. With a small local bank you may find the customer service is more personalized, they may offer lower rates and fees, and you may qualify more easily for a loan or line of credit.
Plus, who doesn't love supporting local businesses??
Final Thoughts
Now that you’ve given some thought to what types of services your small business needs, follow these tips to find the right banking package for you:
- Research some local banks and also some large national banks (suggested below), then make a short list of the best options to contact
- Arrange to meet with a representative of the banks on your list via Zoom or in person, to clarify services, fees, and to get answers to any questions you have
- Make sure to ask if the bank has a connection with your accounting system. Utilizing the banking screen in QuickBooks Online, for example, is a major time and money saver.
- If you run an online business or have very basic banking needs, you might consider working with an online bank. The fees are typically lower with an online bank, but you’ll be sacrificing in-person customer service.
Online banks we love working with
There are two modern bank accounts in particular we love dealing with.
Relayfi Benefits
- Sync's with many apps such as: Quickbooks, Xero, and Plaid
- Cheap wire transfers, both domestic & International, or Free with $30 monthly subscription
- Offers debit cards that sync with your accounting system
Brex Benefits
- Sync's with many apps such as: Quickbooks, Gusto, Expensify, Sage Intacct, and more.
- Free wire transfers, both domestic & International
- Offers credit cards that sync with your accounting system
Both of these options would be great choices for your business. Worth adding to your list
