Small Business Checking Account

A small business checking account can offer the small business owner some advantages and conveniences without having to pay a large monthly service fee or maintain a minimum balance amount. Most banks have many different types of accounts to choose from including ones that have no service charges and a free initial check order. Free business checking accounts do not have a minimum balance requirement or a monthly service charge. Most offer a free debit card and free bill pay. As a company grows there may be a need to take advantage of a bank account that has additional advantages such as earning interest and overdraft protection. A small company owner will need to keep personal funds separate from business funds and the best way to do this is to open a bank account in the name of the company.

Starting a new company can be much easier if the owner will keep the business separate from personal in all aspects. In order to do this effectively the owner needs to open a small business checking account. Other important considerations include constructing a company plan, targeting customers, finding the right location, purchasing insurance, how to do the marketing, taking care of the accounting, and paying taxes. Doing some research online can give a person some ideas about the best banking choices and what kind of account to choose. Starting out with free resources will probably be a good idea in an effort to try and keep expenses and cost down. "If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him" (James 1:5).

Overdraft protection is a good thing to consider having when choosing the right type of small business checking account. When the ledger balance becomes overdrawn overdraft protection will continue to pay checks or drafts. Banks may charge insufficient fund charges even with overdraft protection so even though the checks are paid there are fees accrued that will have to be paid to the bank. Normally the bank will set a limit on how much will be paid on behalf of the person for overdraft protection and exceeding that amount will mean that checks will be returned unpaid.

A new company owner will want to consider developing a budget to avoid occurrences where paying fees and other charges can become commonplace. Bank fees can add up quickly and will put a company in the red. Banks that offer free business checking accounts might be one option to consider. This would limit a regular monthly service charge. Some other advantages to free checking may include no fees on a debit card and no charge on an initial check order. A budget will help the company owner to realize the importance of being careful with company funds.

Online banking is a convenient solution for new companies that desire access to funds and balance information frequently. The Internet gives the customer access whenever needed. Free business checking accounts that give customers free Internet access provides many conveniences. A person can view all transactions, find out the balance, track all deposits, and use online bill pay convenience. In addition, a customer may be able to take advantage of accounting software packages that integrate with the banking system so that it is possible to download bank information straight into business software. However, downloading transactions into company software may not be included as a free service by all banks. The software used by the bank must be compatible with the software used by the company.

Online banks offer other tools and resources to their customers that may help in managing a business. Some of these tools that come with opening a small business checking account include information on accounting, marketing, sales, human resources, and how to grow a business. Business articles that may prove to be helpful through online banking include how to understand the lending process, offering credit to customers, accepting credit cards, and other valuable information. Some of these articles cover topics such as bartering and trade arrangements, how to establish trade credit, using personal credit for business, commercial bank loans, government loans and grants, taking a company public, and how to make investments.

Benefits for a small company owner can often be found through banking services. Those that offer free business checking accounts may also provide merchant services so that a company owner can offer customers the convenience of using credit cards to pay for services and products. Taking credit cards for payment can help a company to achieve higher sales and improve profits. Using merchant services does usually include fees that are incurred based upon a percentage of the total charge amount. More information can be found on the Internet or by calling a banking representative.

Advanced company banking may be a more suitable choice for companies who maintain a high balance at all times and have minimal transactions. Advanced banking often includes more resources to clients through using the Internet or by making a phone call. Advanced accounts do not incur service charges if the balance is maintained according to the guidelines set by the bank. This type of account allows the customer to make transfers between accounts, initiate stop payments, look at interest posted, see the balance at all times, and take advantage of other resources. Online banking through advanced checking can help a company owner to be more informed about financial situations.

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