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Published On: January 26, 2022

What Should a Business Look For In a Bank?

What Should a Business Look For In a Bank?

You have many choices to explore when looking for a quality bank that can serve your business. But with all these choices comes a demand to find someone that fits your specific needs. You can use these points when looking for a bank that will serve your business.

Business Checking

A business checking account is similar to a personal account in that your business can draft checks or ACH payments, or it can make deposits or withdrawals. But what makes a business checking account useful it simplifies how your business calculates its taxes.

A business checking account lets you check your income and expenses and arrange them well to where you can pay your estimated taxes every quarter as necessary. It is easier to gather your financial data through a business checking account than if you had a personal account.

You will also qualify for interest on your business checking account. The bonus can help you add funds but be sure to also watch what fees come with a checking account. The interest you earn should be enough to cover the expenses with that account.

Business Credit Cards

Many banks will offer business credit cards that are for business-related use. You can produce a new credit file for your business that can improve as you continue to pay off your expenses. You can qualify for better borrowing terms as your profile grows.

Business credit cards often come with rewards, including support for covering travel and other purchases. The terms for these rewards will vary by card. Don’t forget to watch for any possible fees that come with your card.

Multiple employees can also have their own cards that link to your business. A bank should give you the option to limit how much money those employees can spend with their cards. Anything that also restricts the specific places where the employees can use their cards also helps.

Online Access

Online banking is critical for all businesses. Your bank should provide online access to all your accounts. You can review real-time info on your accounts and how much money you have through a suitable online system. Any mobile apps from your bank can also help, especially when you’re regularly on the go and need help tracking your banking info from anywhere.

ACH Access

Your business will require Automated Clearing House or ACH access to help you transfer money to others without using wire transfers or paper checks. Your ACH transactions can work for payables and receivables alike. Some of the more common purposes you have for ACH payments include managing loan payments or completing payroll dues. Customers and other clients who have more massive invoices or pay recurring amounts can also send you money through the ACH system.

Support For Your Accounting Software

Every business can benefit from an accounting software program. A program like QuickBooks will tally your expenses and income and help you monitor your daily cash flow. The best programs will prevent accounting mistakes and automate many routine transactions. A business bank account can integrate with whatever accounting software solution you use.

Fraud Protection

The increasingly online nature of the business world has made it where fraud is a real threat. Fraud insurance is an ideal solution that your business can hire from a bank.

Fraud insurance protects your business from losses from a fraudulent transaction. The program is ideal for businesses that handle many transactions each day and ones where more than one person has access to an account. The insurance also prevents bounced checks from vendors, thus preserving your credit rating.

But all fraud insurance services have protection limits that can only cover losses of up to a specific amount. Some banks may also charge some fees for these protective measures. Review the terms a bank provides to see what you can expect out of a fraud protection system.

Investing Through Money Market Accounts

Banks often provide money market accounts to customers. These accounts have higher interest rates than traditional accounts, plus they don’t incur service fees in most situations. A bank should provide your business access to a money market account where you can store part of your business’ funds for further earnings.

The rules for how you can access your money market funds will vary by bank. Some banks will let you write checks from a money market account. Others may limit how much money you can take from the account at any moment. Review the terms for how you can reach the money, including whether you can quickly transfer funds from one part of your business bank account to your money market account.

Support For Retirement Accounts

The best businesses will offer retirement benefits to their employees. These include benefits like pension plans and 401ks. A business that offers retirement programs will have an easier time bringing in new employees. Your business will require such plans, plus it will need a bank to help support these programs.

Banks can help businesses set up their retirement programs. They can also maintain those retirement systems by reviewing how the money enters specific accounts and builds interest. Your employees will want to ensure they receive retirement support from you if they want to stick with your business for a while, so look at how you can provide assistance for retirement accounts.

International Services

Businesses are reaching out to international entities more than ever. Whether it entails other businesses, vendors, or even customers, a business must have access to people in other countries. A bank should provide business support for international communications and transactions. A bank that partners with different international entities or can manage foreign currency transfers is always helpful. The work should simplify how you’re managing business efforts across borders.

Review Each Bank To Learn More

Every bank will have unique features for its business banking services. Be sure whoever you choose has the solutions that fit your business and help you take the next step forward.

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