Opening a business bank account when starting a new business

business bank account

Your business needs to be real and legitimate with accountable money transactions. Opening a business bank account will help in tracking of your business finances. It separates your personal and business finances, thus the right option when receiving and sending money as a business. A firm bank account also eases employee’s duties as well as customers while shopping. It’s also essential during receiving and depositing of payments and sending money to your business investors. You can also use your business account to manage employees pay and tracking profits and expenses. You may think of using a personal account for the business, but it’s not a long term solution as it has many disadvantages. Thus, the need for separating the two accounts. For more details on opening a business account, click here.

There are four steps to put in consideration while opening a small business account:

The Type of the Bank Account

It would be best if you decide on which bank account to open since there are plenty of business bank accounts. Some entrepreneurs will prefer starting a business account in the same bank they run their accounts. But the popular figure starts up with business checking account where you should consider the rates and account options. You need to decide between the online checking account or the traditional bank accounts. The online checking account appears pleasant for business personnel that don’t need cash deposits. But it would help if you also consider the transaction costs and starting offers since they differ from one bank to another. Also, check the interest rates on checking and saving, and also for the credit lines. You need to be aware of the lowest amount to remain in your account since some bank accounts have a restriction on withdrawals. What about if you end your contract before it matures? It’s also a point to consider the charging fees in case you need capital to boost your stock since you can’t predict the business trend. Banking with the traditional firm bank accounts, it’s a bit expensive. But they have a wide range of services and merchandises. Thus, a need to consider the discount rates and the percentage charge of every transaction you do. The transaction cost is also a key since your business is growing and high charges may be unfavourable. All the business bank accounts have an address verification services cost and automated clearing house (ACH) daily batch fees. Also, check on the least monthly transaction cost in case you fail to meet the target to ensure the charges are reasonable. But, also you can still open a business savings account where you can store the profits and earn interest.

Choosing the Right Bank

Apart from your bank, there is another bank account for freelancer options that can offer excellent services for your business. It’s, thus profitable to choose the right bank for your business to thrive quickly. Your bank will have a significant influence on fees and costs, customer services, online banking experience and other financial services. Ideally, start comparing bank options with the current bank and don’t ignore the other alternatives. Check the bank requirements and services and see whether they suit your business. Check the cost affordability of the bank where you should focus on the servicing levies, ATM charges and deposit cost. Ensure its a bank that will make your business grow by offering affordable services; it should be an ideal bank account for freelancer. You also consider the convenience of the network where the bank location is, and ATMs branches. The banks’ outlets should be easily accessible and near your business. The bank you choose should offer excellent online banking services. Many people do online banking through their mobile phones, so don’t go for a bank without online service. Check whether it has reliable online pay bill offers and mobile phone deposits. Besides, check whether the bank offer is bookkeeping integration and its effectiveness. Your bank account should integrate with the bookkeeping software. While in business, sometimes you may desire other support services beside banking. So, confirm whether the bank offers small business loans, credit cards, and lines of cards.

Your Business Name and Bank Documentations

It would be best if you chose the right business name that is not trademarked to ensure proper protection to your business. Check the name online for its availability to provide a unique name that you can use to identify your business online. Also, you can visit the UK trademark offices, and they will confirm the name for you. You also need to pay the protection fee against trademark breach so that your name can receive the protection. After you have the business name, check the bank credentials since they may differ from one bank to the other. Besides, check whether you can register a small business account online or you must attend the local branch. The standard requirements are; the business or personal identification certificates. The certificates will depend on the type of business, whether it’s sole proprietorships or the other forms. So confirm with your bank the kind of certifications you need. Besides, many banks will also need a business license amongst many requirements.

Getting Ready for the Payments

After doing all the above, set your business bank account as a merchant account so that your business can accept fees. Incorporate a credit card merchant account if you will need to receive credit card payments. Besides, come up with an excellent way to process reimbursements when a customer buys goods. If your business expects a lot of e-commerce trades, remember to integrate online payment systems. You can include PayPal payments and many other options as per your wish. But if your business is for in-store trades, combine a point of sale applications that are compatible with iPad tablets and Android. Now the final step is to deposit some cash in your small business account as per bank regulation, and after this, you can do business. Before leaving the bank, if you expect many checks in your business, ask for a remote deposit capture. It will allow you to make the cash deposit without visiting the bank.

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