It might seem like a fairly simple process to open up a commercial bank account for the purpose of managing your finances, but it does require some thought and some careful consideration. It’s very easy to make a mistake when opening up a commercial bank account, with the most common of these mistakes identified below.
It’s very easy to provide incorrect information or to be missing information when you’re opening up a commercial bank account. To avoid this possibility, contact your banking institution beforehand, and ask them exactly what they need in order to start up your account.
It’s very common for a small business to overlook check-signing authorization when they are opening up a commercial bank account. This is especially important if you have a corporate structure which involves a partnership or multiple staff members. You’ll need to specify whether checks should be signed by multiple individuals, or if a single signature is sufficient.
Separate Personal and Business Accounts
One of the most important aspects of establishing a commercial bank account is that it is completely separate from your personal accounts. This is extremely important because it can have a major impact on accounting, business reporting, and taxes. You’ll also be able to decrease your personal liability by establishing a separate commercial bank account.
Choosing the Wrong Bank
Many business owners simply choose the same bank that they use for their personal banking when it comes time to establish a commercial bank account. This may be fine for the sake of convenience, but it’s entirely possible that your personal bank does not fit the needs of your business. In fact, many banks which are set up for consumers don’t provide the features and services which are needed by small businesses to achieve success. You should also be aware of whether or not any bank you choose for your commercial bank account charges monthly maintenance fees because there are a number of banks which offer free services to business clients.
Is your business bank account healthy?
If your commercial bank account gives you nightmares at night, your company may just need a temporary infusion of cash to get you back on the positive side of the business. Contact us at Integrity Financial Capital to see if there are ways we can help you get past temporary issues, and on to more profitable times.