Tuesday, June 18, 2013

Free Business Banking

If you have a business you need a separate business account. I know many people use their personal account when just starting out or if their business is from home or they view it as more of a hobby. For tax purposes, book keeping and basically running your business properly a separate account is essential.

Some banks will charge a lot for a business account with monthly account keeping fees, fees for doing pretty much anything so you really need to shop around. Business banking doesn’t need to be expensive, but you do need to ensure you are getting the right account and banking services for your needs.

You can shop around and find free business banking services in your area. You may find you don’t even need all the things that come with an official business banking account so a regular every day account would suffice for your needs.

Sit down and work out exactly what you want and need for your business banking such as online access, debit card, fee free, do you need a cheque book? When you know what you really do and don’t need it is easier to work out which account is best for you and your business.

You may find you need more than one account, or you want an every day account, savings account and a credit card for your business banking. Whatever it is that will work for you, do your research to ensure you are not paying for things you don’t actually need or use. Too often people go “I can claim it back on tax” so they don’t worry about certain expenses. While it is true you reduce your taxable income with various expenses, it doesn’t make that expense free, just reduced. You are still paying more than you need if it is a fee that you could otherwise not have to pay.

My business banking needs are pretty simple as my business is all negotiated online, invoices are usually paid via PayPal or straight into my bank account. I do sometimes have to pay PayPal fees, but other than that my banking is fee free which is how I want it.

I’m curious, what sort of accounts do you have for your business banking or what banking needs do you have? Do you still use cheques at all? Do you have high fees?

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