Starting a Small Business?
You Need the Right Checking Account.

Starting a business is an exciting time. Many new business owners start funding expenses from their own pockets, using personal checking accounts and credit cards. By creating a clear distinction between personal and business expenses, however, you will be much better off. Having separate finances improves your visibility into the cash flow and performance of your business. At tax time, you may be able to claim deductions for business-related expenses (travel and supplies); keeping an account for those expenses makes it easier for your accountant. Additionally, it may help you protect your personal assets and credit down the road.

Evaluate your current banking relationship. Have you been happy with the service you receive? Will they be a good fit for your expanding needs? Does your bank welcome small businesses? Factors to consider include costs of maintaining your account, rewards for your relationship and ease of use.

Managing expenses will help your bottom line. When your checking account is not the right size for your business, fees can add up quickly, reducing your business’ profit. Look for ways to avoid account fees, such as with a relationship (multiple accounts) or a minimum balance. A checking account with no balance requirement may be best if you are just getting started, as unpredictable cash flows lead to account fluctuations.

Unlike your personal checking, some small business accounts may limit transactions to 100 per month, for example, and charge fees for exceeding that number. A “transaction” can include anything from each check deposited, to ATM withdrawals, debit card purchases, transfers and electronic payments. Unsure about your initial activity? Look for a bank account without transaction limits.

How does your bank reward you for your relationship? Not all banks pay interest on account balances. Or there may be stipulations to earn interest. Online banks have consistently led the industry in offering higher interest rates due to lower overhead.

Before you choose a bank based on proximity, consider whether you actually need in-person transactions. Once the most frequently-cited reason to maintain a branch relationship, cash transactions have declined dramatically in recent years. If you are able to break free of the branch, you can expand your search, opening more possibilities.

Seasoned small business owners agree: every day will be an adventure. A majority work evenings and weekends. Traditional bankers’ hours may not meet your needs. Make sure your bank goes with you, providing expanded support hours with online and mobile accessibility. Suppliers may want to receive payment electronically; look for ACH services allowing you to send them easily. And, unlike your personal account, you may wish to grant permissions to others, such as an accountant, to log in and access your account history. If that is the case, look for “shared account access” or “entitlements”.

All of these technical aspects are important, but also consider the bank itself. Good relationships are based on mutual respect and trust. You must believe that they can provide the financial expertise and services you need in exchange for holding your operating account.

Your checking account will play a big role in your day-to-day operations. Take time to make sure you have the right banking relationship for your needs…and there’s no better place to start than with Do More Business^TM Checking. See all of your accounts – business and personal – in one place. That includes investments, credit cards and mortgages. Plus, enjoy:

• Unlimited transactions
• Competitive interest rates*
• No minimum balance or monthly service fee
• Cash Flow Analysis of key metrics
• Balance Optimizer to build your profits

Open a small business checking account