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 cheques in your business name — like bigger, well-established companies do — 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 searching for one. 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 cheque and savings account, an ATM card, the ability to write and cash cheques, online banking and employee cheque accounts, if required.
Of course, some businesses will want 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.
Also, many banks provide access to a small business advisor 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 of all potential business banks
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 withdrawals, location may be a cost consideration. If you travel internationally, you’ll also want to look into fees for international cheques, conversion rates and charges for withdrawing cash from foreign ATMs.
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. You may find that customer service is more personalized. They may also offer lower rates and fees and you may qualify more easily for a loan or line of credit.
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 local small community banks and large national banks online, then make a shortlist of the best options.
- Arrange to meet with a representative from each bank on your list to discuss services, fees and any queries you have.
- If you run an online business or have very basic banking needs, you might consider working with an online bank. Their fees are typically lower, but you’ll be sacrificing in-person customer service.
If you are looking for a small business accounting specialist then speak to us today. We offer fixed upfront pricing and have a wealth of experience in supporting small businesses in Perth to succeed. Request a FREE no obligation meeting today to discuss your individual needs. Simply call us on 9204 3733 or use the contact us form