How to Choose the Right Business Checking Account for Your Startup
Starting up a business is a grand adventure full of decisions around every corner. Among the bigger financial decisions to make is how to handle bank accounts — specifically, whether or not to open a business checking account. Having a separate business checking account can allow one to keep his money organized, and his or her personal expenses separate, which can definitely make doing taxes much easier. Great, but which one should you set up for your startup business? Now, some of the key steps and insights leading your decision to the best will be discussed.
Know Your Business’ Special Needs
No two businesses are alike — so the number one step is to know what your spending habits and financial needs for your startup are. First, figure out how many transactions you’ll be dealing with each month: Will you look at mostly payouts or actually want an account able to deal with customer deposits and payroll? Your needs here will ultimately point you toward the right solution for business checking.
Look for Fees and Costs
There are so many types of accounts that your bank will be nibbling away at your margins in no time. Check what the total monthly charges will be, maintenance of accounts, transactions, inquiries, and interbank transfers. Some bank accounts charge for too many or too few transactions in a month or not maintaining an average minimum balance.
Prioritize Accessibility and Convenience
Think of how it will feel running your business with headaches from fighting long wait times in banking or outdated technology. It all comes down to one thing: reachability. Find a business checking account that will let you manage your finances online or through a mobile app. That would mean you save time while accessing remotely for easy transfers and bill-pay options that keep operations smooth.
Any decent online platform would include bill pay, direct deposit, and real-time transaction tracking all much-needed functions of the active entrepreneur. Banking should be done for you, not the other way around.
Evaluate Features and Additional Perks
Don’t settle for the ordinary “business checking account.” A lot of banks have upped the ante on the business accounts they offer their startups and small business customers, offering a wide range of added features and capabilities to meet expectations, whether that’s in terms of cash flow, payments, or connecting you with small business lenders nearby.
Security Matters — Ensure Your Funds Are Safe
As a startup, you’re probably working through a lot of high-stakes financial transactions every day. And that means a checking account that always has your starters back is not something you can negotiate about. Find something that offers fraud protection, for encryption and insurance of your startup dollars. A majority of business checking account providers, like Bluevine, add a couple of other security features like two-factor authentication and even fraud alerts.
Consider Your Long-Term Goals
Finally, consider your road map for the next year or two: Are you scaling fast? Will you need to have international banking? Maybe access to business credit? Make sure to find an option for business checking that scales with your company and grows with future needs.
Choosing the Right Option
Choosing the right business checking account might seem daunting, yet is quite easy to do if due diligence is performed. You will set a foundation for financial success when you match your business to the right fees, access features, and security, having a plan for the future.