Out of all of the small businesses operating, only 40% are profitable. There are many reasons why, but they usually point to one common theme: poor financial management.
At the center of financial management is business banking. Business owners operate with very little thought to banking and managing bank accounts.
They look at the current bank balance and make financial decisions accordingly. That’s no way to run a profitable business in the long run.
You’ll want to upgrade your entrepreneur banking skills. Read this guide for business banking tips for business owners.
1. Separate Business and Personal Accounts
Most businesses start out as sole proprietorships because they’re the easiest and cheapest form of business to start. There are also no requirements to separate your business from personal expenses.
It does make things complicated at tax time. Business owners have to show that they’re deducting legitimate business expenses, which is hard to do with your personal account.
Open and maintain separate accounts for your business and personal expenses.
2. Know Your Financing Options
There may be a point where you want to grow your business. Financing helps you scale your business faster because you have the resources to invest in growth activities.
Business banks offer loans and lines of credit. Find out what your options are when you sign up for a bank account.
3. Easy to Do International Business
Ecommerce and online businesses can get customers from anywhere in the world. You might do business with vendors outside of the United States.
International business banking isn’t always easy. Banks place limits on transactions outside of the U.S. to reduce fraud.
You might have to call your bank to process a $20 transaction to Canada every month. That takes up time if you want to make a purchase or pay a vendor on time. There might be transaction fees if you accept payments in different currencies.
They might also have high fees for international bank transfers. If you plan to do a lot of international business, be sure to check with the banks to find out how flexible they are with international transactions.
4. Additional Business Support
Some business banks go the extra mile for their customers. They want to see their business customers succeed.
To foster success for their small business customers, banks like winden.co provide business coaching and resources.
5. Online Banking Services
It’s so much easier to handle banking tasks from your phone than going to a bank branch. Business owners are too busy to make a trip to the bank for simple tasks.
Most banks have a full suite of online banking services, but some banks are still behind the times. Check out the online banking features of a bank.
Banking for Business Owners
Running a small business takes time and energy. It helps to simplify as many tasks as possible. These banking tips showed business owners how to manage financials and get the right banking solutions.
Did you enjoy learning about banking for businesses? You’ll enjoy the other articles on the blog. Check them out today!
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