Making your hard-earned money work for you as opposed to the other way round is the dream of all business owners, to pay lower fees and rates and to get more rewards and paybacks. To do this though you will need a smart savings and checking account for your company that is well managed, adjusted according to the business needs and financials and that offers the percentages that work with you.
Paying staff is easy enough via bank transfers and direct debits, but receiving money from clients and vendors can often backfire with all the deposit fees and transaction costs that come with depositing cheques or cash deposits, so what do you do?
Firstly, you need to be motivated, this will drive your ambition and take the focus off the costs, see some inspirational words here https://www.oberlo.com/blog/best-inspirational-business-quotes and then find a bank that understands these needs and transactional queries who will help you better understand how to go about smart banking and payment methods.
So why is having a specific banking account for your business so important? For starters you would not want to mix up personal and company transactions and payments, it will get messy, complicated, and in the long run, could end up hurting you on both sides of the stick.
Lets’ take a look at the top reasons why successful business entrepreneurs and company CEOs opted to separate the two.
- Professionalism. Clients won’t be too impressed if you give them a banking address and account details that don’t reflect you as a brand or leader. A banking business cheque or savings account shows you are doing things the right way that this is a legitimate company, and you are serious when it comes to work ethics and being professional.
- Manage. When you have been in business for a while you will start to notice that the earnings and expenses increase, this is a sign that it is time to open a separate account. It not only allows you to keep track of all essential payments and payouts in one place but you can edit and maintain them based on performance and need.
This is especially true when keeping an eye on staff dealing with the money and accounts, a business checking account credit union could be what your company needs, you want to feel safe and have peace of mind that your earnings are safe and protected.
- Privacy. Using a company letterhead along with printed brand named cheques and invoices gives customers confidence in you that you are a successful business manager or owner. It also keeps personal information private and away from prying eyes, we can never be too safe when it comes to our financials.
- Relationship. Anyone who has built something from nothing knows how important a relationship can be with your suppliers and creditors. Showing the bank you are timely with payments and transact professionally instills in them the pride you want for future options.
If they see you manage your account and funds well and with somewhat ease you are more likely to get a line of credit, this could be helpful in the event of an emergency or to expand a growing business (which is always a good sign).
- Sold. It could be on the cards that a new venture has come up and you are unable to balance both, selling a well-established company is easier if they have their books in order and that their banking procedures are up to date and efficient. A quick look at the books and banking financials could be what makes or breaks the sale.
Saving for a rainy day.
You may not have thought about it or thought it necessary but having that backup financial security blanket is always advisable for businesses, it may be something that is not used for years but readily available if needed.
Having those funds on hand can help pull your business through and out of tough times, and help to grow it when the time is right and the appropriate proposal lands on your doorstep. We can never be too safe or careful in business, it may be that you start with small amounts, this is perfectly fine, and the main objective is that you are planning for a more secure future for you and your company.
Now that you have decided to open the checking business account, what do you need to look for, how do you go about the process without being overwhelmed or pressured into unnecessary ‘frills.’ A crash course essentially can be seen here but for the most part, there are few foundational elements that will get the ball rolling and have you headed in the right direction.
You will need to do your homework, research the company you’re considering, check their banking fees, perks, and fines, and read the fine print. If possible have your legal team go over the paperwork before you sign anything.
Once they give the go-ahead, you will need to gather the correct documentation and identifications, be sure that these are valid and up to date, if not it could delay the process. Depending on the bank and for some, the generation they grew up in, they might opt to open the account online but rather in-person if you need to ask further questions or have concerns.
If it all goes smoothly and the account has been cleared for use, you are already one step ahead of the game. All you need to do now is deposit your earned funds and build your empire.