Whether you are getting ready to launch your business or have been operating for some time and are looking to make some financial upgrades, choosing the right business checking account is an important step. Business checking accounts can vary widely depending on the financial institution you choose and the resources you have at your disposal. If you are considering opening a business checking account or switching your current account, here are five important factors to consider when making your decision.
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- Monthly fees. Business account fees differ from bank to bank. Some banks offer these accounts and services for free while others may charge thousands of dollars per month. There may be options for waiving your fee, such as by keeping a certain amount of money in your account or limiting your transactions. By researching and choosing the right bank, you can reduce your fees and make the best choice for your business.
- Types of services offered. Your business bank account should be able to offer you all the financial tools you need to run your business, including in-branch services and online services. You should be able to view balances and activities, pay bills, manage company credit cards and more online. It may be convenient to open your business account at the same institution where you have your personal accounts to make transferring money and accessing services easier.
- Cash and transaction limits. With a business account, you may be charged a fee after a certain number of transactions. For example, some banks have a cash deposit limit or a total deposit and withdrawal limit. If you make a lot of sales or withdrawals each month for your business, be aware that these fees can add up.
- Flexible debit cards. If your business has multiple employees, or you expect to hire them in the future, you will likely need to issue them a credit or debit card for business-related purchases. While most business accounts include this feature, some banks may charge for it.
- Integrations. Your business bank account should connect to your current accounting software, such as Quickbooks, to allow for easy budgeting and finance decisions.
When it comes to choosing a bank for your business checking needs, there are many factors to consider. Ultimately there is no right or wrong answer. Everything comes down to what will best serve the needs of you and your business.