7 Tips to Get the Most from Your Business Checking Account

By Michael Grace | American Express® Freelance Contributor
3 Min Read | October 11, 2021

Summary

1. Know the Benefits of a Business Bank Account

Business checking accounts provide business owners with both tangible and intangible advantages not readily available through personal accounts. For example, business checking accounts enable companies to accept credit card payments, which can help businesses avoid losing sales when customers don’t have cash on hand. What’s more, business checking accounts can add a level of professionalism not afforded by personal accounts – business payments written on personal checks may not seem as credible, for instance. Finally, business bank accounts enable companies to keep personal expenses separate.

2. Keep Personal and Business Expenses Separate

Running business transactions through a business checking account clearly separates them from personal finances. This can tighten accounting efficiency and make it much easier to file taxes quickly and accurately – and if an individual or business does not file taxes correctly, they could face IRS penalties. What’s more, keeping business expenses separate can limit personal liability by protecting a business owner’s personal assets in the event the business is sued or goes bankrupt, assuming the business is registered as an LLC or corporation.

3. Understand Business Bank Account Fees and Other Charges

Many business checking accounts charge fees for monthly maintenance, surpassing transaction limits, or not meeting an average balance requirement. When running a business, every dollar counts – especially at the beginning. Before choosing a business checking account, understand how they handle such charges and what can be done to avoid them or qualify for a fee waiver.

4. Bundle Up on Additional Services

Many banks may provide businesses with merchant services like payroll management and point-of-sale solutions. Bundling them with your business bank account might minimize costs, and can help streamline your business’ finances by keeping it all in one place. Some banks offer businesses the ability to add a business credit card to the account. Many business credit cards offer cash back that can be redeemed for statement credits or points that can be redeemed toward travel – either of which can help businesses earn rewards for the purchases they’re already making.

5. Take Advantage of Introductory Offers

Banks commonly advertise introductory offers to entice new customers. This might include waived fees for a certain period of time, or a bonus deposit for meeting or exceeding a starting balance limit. Waived fees may last anywhere from a year to two years depending on the bank and its offer, which can be a boon for small businesses looking to get their footing or other businesses looking to grow. Just be sure to pay close attention to what fees will be after the introductory period to prevent potentially costly surprises.

6. Establish Good Financial Relationships

Opening and maintaining a business bank account can help establish good financial relationships. And the longer the account is in good standing, the stronger the banking relationship may become. This can prove beneficial when it comes to applying for a business loan, opening a business credit card, or using other bank services. It can also make it easier to open separate accounts for payroll, sales, or operating expenses, for instance.

7. Integrate with Your Financial Software

For businesses that use accounting software to manage business finances, it can be helpful to integrate bank information with software programs. This can streamline a business’ finances by automatically updating key financial and accounting information in real time. However, it’s not guaranteed that all banks will offer ways to easily integrate with accounting software. If software integration is important to you, be sure to confirm with the bank before opening an account.