Learning About Finance and Money
3 Key Considerations When Setting Up A Business Bank Account
Jordy De Pijper
As a business owner, there are a lot of different things that you need to have in order to keep your business functioning smoothly. One of the things that every business owner needs is a commercial banking account. However, there are so many different options available that it can get confusing and overwhelming trying to figure out what bank to go with and what type of products you are going to need. To help make the process simpler and guide you along the way, here are three things to consider when making a final decision.
Fees involved.
Many commercial bank accounts have different fees associated with them. A monthly maintenance fee is quite common. However, there are some institutions that are willing to waive those fees for you as long as you maintain a certain balance in the account every month. Others charge a fee regardless of what you have in the account. You need to know what these monthly fees are to make sure you don't end up getting hit with an overdraft fee simply because you forgot about the monthly maintenance fee of $10.
Transaction limitations.
Another thing you need to find out about is whether there are any limitations on the amount of transactions you can have going through the account per month. You might want to look for an institution that is going to allow you to have unlimited transactions. This will help save you on any additional costs incurred. You can't always predict how many checks and debit card transactions you are going to have coming through your account each month. An unlimited account will save you a lot of hassles and headaches with how many transactions you can have.
Authorized users.
Another thing to look into is how many different users you can add to the account. This is important when you have a partnership with multiple managing partners. You don't want anyone to feel like they aren't an important partner and unable to make financial decisions for the business. Adding on everyone who plays an important role in the business will save you on having to try and figure everything out on your own each month. This lets multiple people go to the bank and handle any important business transactions that need to be completed.
By going through the above information, you can determine what account is going to best work for your individual business needs.
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