The Top Five Benefits of Business Banking
Building a business from the ground up can be difficult, but it’s significantly easier if you have reliable access to the money you need to get started and keep going. Many business owners start out with just their personal bank accounts, but quickly realize that they need more than that in order to grow their business the way they want to – which is why so many people decide to open business checking or savings accounts as well. Here are the top five benefits of choosing business banking over personal banking.
Security
By definition, business banking is secure. Think about it—banks exist because they are trusted institutions, which means you can deposit your cash knowing that it will be safe and accessible whenever you need it. Additionally, business bank accounts come with all sorts of security measures, including fraud protection, to help ensure your funds stay as safe as possible. This not only helps protect you from people using your funds without permission (if you're in business for yourself) but also from things like identity theft. Because a lot of businesses have sensitive information on hand at all times and are required to keep records for a number of years after businesses go out of existence by law (in addition to those required by IRS). You need to be able to access your business bank account whenever you need it. You should have a card or two for using ATMs, but if you really want a headache-free business experience, consider asking for a debit card that can be used with your phone or key fob. In many cases, all it takes is an app on your smartphone to give you instant access to your funds from anywhere in and outside of your country. This is also convenient because it means one less card to remember and keeps everything nice and tidy.
Privacy
As a small business owner, you don’t have time to mess around with bureaucracy or fill out reams of paperwork. You just want to do your work—and get paid. That’s why business banking can be so helpful: most banks provide online services that allow you to quickly pay vendors and employees and deposit checks without spending hours in line at your branch. If you frequently receive payments from overseas clients or suppliers, bank wire transfers might be an option for keeping your financials private—especially if you don’t want to deal with fluctuations in foreign currency exchange rates. Plus, some banks offer tools like virtual vaults that allow you to safely store sensitive information so it can't be compromised even if someone gets hold of your phone or computer. Your business bank account can also help keep your finances private. All businesses are required to report certain income—like sales tax and social security payments—to their state and federal governments, as well as pay quarterly taxes. However, keeping information on hand is not an excuse to avoid paperwork. When you have a business bank account, you can use online reporting and payment systems to automatically file required reports, fees and payments with minimal effort on your part. Plus, it allows you to track when tax payments are due so they don’t sneak up on you at year end or become buried under your business expenses.
Convenience
The first benefit of business banking is convenience. Online and mobile access make it easy to manage your accounts no matter where you are. In addition, online bill payments are quick and efficient so you don’t have to worry about missing a payment. Many banks offer business checking accounts with no monthly fees or minimum balance requirements which means more money in your pocket! High-interest savings account: Another benefit to business banking is high interest savings accounts. Online banks tend to offer higher rates than traditional brick and mortar ones and there are no monthly fees or minimum balances to worry about. You can withdraw money from these accounts easily in case of an emergency and since it’s separate from your checking account, your company will not go under if you lose any money. Instead, you'll keep that extra cash in your pocket where it belongs!
Discounts
Many businesses actually rely on banks for their day-to-day operations. These businesses will reap a host of benefits from having business bank accounts. For example, banks are more likely to offer special discounts for business customers than for personal ones. Discounts can range from as little as 5 percent to as much as 20 percent off what you would pay if you weren’t a business customer; but usually fall around 10 percent. On top of that, some banks offer free or discounted ATMs and other perks when you open business accounts. You may even be able to set up an individual checking account and have it become part of your company’s business bank account with ease! It all depends on who your bank is and how they do things. Make sure you do your research beforehand!
Customer service
With business banking you’ll get to work with a real person and will usually have much more personal attention than you would with a traditional brick-and-mortar bank. That means less long hold times, prompt responses and personalized service every step of the way, from opening your account to planning for your future. You should also have a clearer idea of what’s on your balance sheet thanks to online accounting software that syncs directly with your business bank account. But perhaps most importantly, having business banking gives customers peace of mind, knowing their money is safe at all times and won’t be blocked in case something goes wrong; plus they won’t have to deal with unforeseen fees or limits either. On top of that, your business bank account can come with online banking. This allows you to manage your financials in a very efficient manner and can be just as secure as paying in person, if not more. Transactions are processed quickly and in real time so there’s no waiting around to get access to your money when you need it, while many types of fees are typically waived unless they’re directly related to risk management. And speaking of risk management, another advantage is that transactions are often monitored for fraudulent activity and other red flags that may signal illegal behavior or fraud on part of an employee.
