If you're starting your own business, one of the first things you'll want to do is establish a relationship with a bank. You'll need a business checking account for starters, and you may also need other services eventually such as a business loan or merchant account. Here's how these business banking services can help you manage your small business better.
You should open a business checking account right away so you can keep business funds separate from your personal funds for easier accounting. Choose an account with features that make managing your money easy such as scanning deposits, integration with accounting software, payroll options, and even employee access. You may want to allow employees access to your online account to check payments, complete orders, or transfer funds. A business account can do this by granting them limited access so they can do the tasks you want without them being able to see your banking numbers or withdraw money.
There are various ways for your business to accept payments. This allows you to choose the best one for your situation. You may need a traditional merchant account from your bank so you can accept credit cards over the phone or in person. If you don't take money from individual orders but accept larger payments for services rendered, then you can set up direct deposits or even use wire transfers to move the money into your account. Talk to your banker about the best way to get money into your account with the lowest fees. Merchant accounts usually charge a fee for each transaction depending on the amount of monthly volume your business brings in. If you only have a few deposits each month, you may want an alternative way to accept payments. If you accept cash payments, then you'll want to know the procedures for making night deposits and you'll want to understand when your deposits will post so you'll get quick access to the money in your account.
Lines Of Credit
You may not have enough cash on hand to get your business off to a fast start. A business loan could give you the help you need and keep you from digging into your personal savings. Talk to your banker about establishing a line of credit for your business. You may want a credit card in your business name as well as a loan. This can help your business become better established and start building a good credit history from the beginning.
Even if your business is only making a few sales at the start, you should at least open a business checking account so it can get established. The banking services you need will grow as your business grows, so start your relationship with the bank early and keep your balance in good standing so you can rely on loans and other help when you need it most.