(Newswire.net — May 11, 2023) — Running a business isn’t easy. It demands a lot of commitment and comes with a lot of uncertainty. But, many resources are available to make it easier, such as a dedicated business account.
A corporate account provides tools that make it easy to manage your finances and report accurate figures. You can also easily receive payments from customers or pay vendors. This article will show you the features to watch out for when choosing one for your business.
Things To Consider When Choosing A Corporate Bank Account
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Fees
Every banking institution makes money by charging fees to customers. Corporate accounts incur fees on transactions such as wire transfers, withdrawals, deposits, foreign exchange, etc. Before choosing one, you should thoroughly check what fees your institution charges for corporate accounts. Most banks offer this information beforehand, so that shouldn’t be a problem. Remember to read the fine print to see if any additional fees apply.
There are endless banking platforms vying for customers, meaning fees are competitive. Some platforms don’t even charge fees for simple transactions like deposits and withdrawals in a bid to attract customers. The idea is to choose a platform whose fees you can afford and avoid any potential setbacks.
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Interest Rates
Financial institutions pay interest to customers that save money with them. If you want to earn interest, you can shop for a bank that pays the best rates and gives you a healthy return. Typical interest rates are between 0.1% and 5%.
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Transaction Limits
Banking firms often place limits on their customers’ transactions. For instance, you might have a daily, weekly, or monthly withdrawal limit. If you’re the type that transacts frequently, these limits could hinder your business. Hence, you should check for any limit your desired bank imposes and be sure you’re comfortable with it before opening an account.
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Online Services
Transactions have largely become digital. Gone are the days when you needed to visit a physical bank branch to send or receive money. Many banks now let customers open business account online, and it’s preferable that yours allows this. Any bank that refuses to adapt to our increasingly digital world is likely not a good one.
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Credit Services
You may need a loan to expand your business at some point. If so, your bank should provide you with loans at favorable rates. Many offer loans with discounted interest rates for customers, and you can take advantage of that.
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Software Integration
One of the best things about corporate accounts is that they usually have integrations with third-party software that make it easier to run your business. For example, you can directly integrate the account with your bookkeeping platform, and every transaction on your bank account will be automatically recorded. You can also directly integrate it with your tax preparation software to make it easier to file tax reports.
Watch out for the integrations that your account offers because they make it easier to run a business.
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Debit/Credit Cards
You should be able to request a debit or credit card tied to your account and get it quickly.
Advantages Of A Corporate Account
- It makes it easy to keep track of business expenses, including those you can deduct from your tax liability.
- It lets you keep personal and corporate finances separate. This means preparing financial statements and reports will be less difficult. Keeping them separate also lets you retain your limited liability protection in case of bankruptcy or restructuring.
- It makes your company look more professional to customers and vendors.