When launching a business, the typical account an entrepreneur will open first is a checking account. Peter Fitzke, a Business Banking Product Manager at U.S. Bank, says that a checking account is the financial heart of a business. To sum it up, a checking account allows you to receive money, make payments, and it organizes your payment information. Opening a checking account allows you to save time, and any amount of extra time is precious when you’re running a business. Below we’ll discuss five things to look for when opening a business checking account.
Make sure your bank utilizes a website or app for online and mobile banking. In today’s digital age, having online features with your checking account is expected.
Your checking account should include a debit card that allows you to withdraw and deposit money from the bank’s ATM with no fee. The same principle should be applied to checks, for not all business is conducted online.
Bill pay allows you to make single or recurring payments both electronically and with checks. This method of payment can help save time and energy that would’ve been used for managing your payments at work.
Usually, checking accounts have transaction limits. This means that after a certain amount/frequency of transaction, you will be charged a fee. If you estimate the number of transactions you will expect monthly, then you could use that information to decide which type of checking account to register for. A typical checking account will have a monthly transaction limit and a maintenance fee.
Overdraft protection can shield you from numerous fees. It provides businesses with more flexibility, especially for businesses who are closely managing their cash flow.
Choosing the right checking account for your business doesn’t have to be complicated. Along with ensuring it includes the fundamental features such as a debit card, online banking services, and checks, begin by analyzing your business’ financial needs to decide which checking account would benefit you the most. Opening a checking account can be done easily online, but a consultation with your banker about the needs of your business would help immensely.
To read Entrepreneur’s article, click the link below.
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