When opening a bank account for my small business two years ago, it was paramount that I choose the right bank. The last thing that I wanted was to have regrets down the line or be required to repeat the process again. With all the options available out there, each promising the best perks for my business, I knew it would be overwhelming. But, I wasn’t ready to compromise on what I wanted for my business. Thankfully, I was able to find a bank that I can say ticks almost all the boxes for my business banking needs. How did I do this? I simply put the below five considerations in mind.
Business goals and needs
Whenever making any business decision, I ensure that I’m guided by my long-term business goals and needs. Moreover, it was no exemption when choosing a bank for my small business. At the very least, I wanted a bank that could accommodate my business growth at every juncture. For instance, I had anticipated opening another branch in a few years, and I knew that taking a loan to finance the expansion could become necessary at some point. That is why I ensured that the bank I chose offered small business loans. In addition, I had plans to start selling online to attract international customers. For this reason, I needed a bank that would facilitate payments easily and affordably. I recently opened a EUR IBAN account to receive payments from across the borders. So far, I can say that I’m happy with the fast processing and affordable fees that my bank offers.
Fees and costs
Different banks have different rates for the fees they charge for every transaction such as withdrawal, deposit, and checking fees. There are also other charges such as account management fees, overage fees, inactive account fees, minimum deposit fees, and more that banks charge. You have probably heard of hidden fees that really add up and surprise you at the end of the month. I didn’t want any surprises from unexpected or hidden fees deducted from my business account. That is why I took my time to determine the expected rates. I did a comparison of the several banks that I was considering and chose the one that suited my business most.
Integration
As a small business with no budget to hire a bookkeeper, simplifying my work is critical. I need to save time and dedicate it to other areas that need my attention. That is why finding an account that integrated with my accounting software was paramount. You probably know how tiring it can be to enter every single bank transaction manually. Besides taking this painstaking process off my to-do list, it also made monthly bank reconciliation simpler. What’s better, my bank supports integration with several other accounting software, including the one I plan to adopt down the line included. So, I don’t have to worry about going back to manually keying in transactions or finding another bank when that time comes.
Accessibility
When the business is growing, going in and out of the bank to withdraw, deposit, or do inquiries is the order of the day. For this reason, the bank’s proximity to your place of work is critical. I was looking for a bank that was close to my business to make it easier to access any time I needed to. Another thing that was critical to my decision was that I anticipated traveling across the country to market my business. I needed a bank with branches all over to facilitate my banking needs from wherever I was.
Support
Nothing can be frustrating as trying to reach your bank with an urgent matter to no avail. That is why I wanted a bank that could provide support whenever I needed it. Sometimes there is no limit to the number of hours that you work when the business is small. When you are required to work beyond normal business hours, you need a bank that can support that.
Conclusion
Choosing a bank account for your small business is an important decision that needs not be rushed. You don’t want to open an account today and another one tomorrow. My secret was taking my time to analyze my goals and needs as well as what to expect from the bank in terms of fees, accessibility, integration, and support. While I had to make a few compromises, I made sure to choose the ideal bank for my business.