As a small business owner, ask yourself, are you banking right? There are a number of factors that can contribute to the success – or failure – of your business. Banking is one of them.
If you’re currently a small business owner or are in the process of getting your business up and running, evaluate your current situation with this simple small business banking checklist...
- Determine what your business needs in a bank. At the onset of choosing a bank for your business, first determine what features are important to you and your business. Nationwide access? What fees are there, if any? How about interest rates? All are important considerations for your business.
- Choose a bank you can trust. You want a bank that you can instill trust and confidence in - this includes the ability to establish a positive rapport with the bankers you will interact with regularly. Do your research before choosing and get to know the institution you plan to bank with.
- Keep business and personal banking separate. Perhaps one of the most important steps in establishing sound banking practices is to avoid mixing business with personal. This will ensure you keep your finances separate and will establish a useful paper trail for tax purposes.
- Establish a line of credit in your business name. Establishing credit as a business is extremely important and a fundamental step in smart business banking practices. Get a credit card in your business name as soon as possible to start building your credit.
- Establish a business savings account. Just as important as building credit for your business is building savings. While there are a number of reasons for a business to save – whether for taxes or a “just in case” scenario – setting aside funds in a business savings account is extremely important.
So, how did your small business hold up to our checklist?