Choosing a business banking account is about packing all the transaction facilities you need into the smallest possible monthly fee. There's a wide range of options, often varying from bank to bank, but here are some small business finance tips.
- The personal account: Personal transaction accounts can minimise fees and seem simpler when you're getting your business up and running. But a business bank account is vital for:
- ease of expense management
- simplicity (and validity) of tax deductions
- less stress in the event of an audit
- professionalism of a non-personal account
- Facilities: Different businesses will have different banking needs. You may need access to a pool of funds, in which case a high interest rate will be on your priority list. A high volume of transactions can make a monthly fee with unlimited usage the better option. Most accounts will offer:
- internet and phone banking
- lockbox service
- payroll processing
Unlike personal bank accounts, it's difficult to avoid fees - eg monthly - on a small business bank account. Just make sure you're getting the features you need, and console yourself that fees are tax deductible.