Once you have incorporated your business and before you have a nice cash flow coming in, it will be essential that you open a business bank account so that you keep your business and personal finances apart. The main reason for this is that you will need to be able to verify your business finances for tax purposes. You will need to be able to show an accurate profit of your business to file your taxes.
How to Pick the Best Business Bank Account
Each company requires different things. These requirements will vary depending on the business size and the profit margins. This makes it essential that you decide on an account that specifically works for your business. If you have a small business, you may want to find an account that offers free business banking. This can help you out until your company is bringing in more money. Once your business begins to perform well and has a running cash flow weekly, you would want to apply for a business bank account that offers low cost transaction fees and higher rates of interest upon credits made to the account.
I suggest that you make a list of what your specific requirements would be for a bank account and then begin to do research on the best business bank accounts. Many features and offers of free services can rope you in but you really need to know what you are going to get out of the complete package. Below I have listed some of the most basic costs and features questions on bank accounts so that you know what to ask for.
12 Questions to Help You Pick A Business Bank Account
1) Can you get free business checking? If you can, what is the timeline available for it and what are the limits of balances you must have?
2) Can you have a business credit/debit card for purchases? How many cards would you require and what are the fees per transaction?
3) How many direct debits will you need to have set up? How many standing orders as well? How much will it cost for these?
4) Can you pay checks electronically or post them? What are the fees attached?
5) Will you need to withdraw large sums of money at one time? Will you be charged for withdrawals?
6) Will you be required to cover overdraft charges? How much will they be?
7) Are facilities located near you?
8) Does the bank offer online and telephone banking?
9) Can you save money by doing all your banking online? Would you find it a big problem to do this?
10) Do you have the option to transfer money from one account to another?
11) Do they offer you a saving account so you can obtain interest?
12) If you cause an overdraft, how much are the fees?
Different account will offer you different advantages. It is important to look around and find the best business bank account for your business dealings. It can help you to find out more information by researching online. You could possibly get better rates and of course, it is quicker to look online than going from bank to bank.