Choosing the Best Business Banking
Establishing a business banking account is one of the first things company owners need to do. These
accounts are vital for obtaining accurate accounting data and keeping track of allowed tax deductions.
When business owners mix business banking along with individual accounts they will likely end up
undergoing an IRS audit. The time spent clarifying expenses and providing adequate documentation can
be grueling and may lead to late fees and penalties, so it's best to start things off on the right foot.
There are quite a few ways to setup a business bank account. Owners can apply online or visit banks in-
person. They can select a basic checking account or apply for accounts that include merchant services,
direct deposit payroll, or an open line of credit.
Many banks offer accounts that can be connected to accounting software programs such as Peachtree
or QuickBooks. Interconnecting accounting software with business accounts help managers conserve
time while providing adequate documentation for tax records. Additionally, this method lets business
owners access their account from various locations such as work, home, and even while traveling.
Fees associated with corporate checking accounts are usually quite a bit more expensive than personal
bank accounts. The majority of banks charge companies a monthly service fee. Some charge fees for
every transaction, while others charge if transactions exceed a set number. Fees are also assessed for
overdrafts and electronic transfers.
Although it's never a good idea to bounce a check, companies can avoid expensive fees by setting up
overdraft protection thekontent. This involves connecting business checking accounts to a savings
account or credit card. If overdraft occurs, banks automatically transfer a preset amount of money into
the checking account.
It can be very helpful to comparison shop banks to find ones that offer the most benefits and assess the
lowest fees. A trusted source for comparing banks is Bank