A disorganised banking system can hinder your business more than help it. From everyday banking products to small business loans, this article looks at some of the products and services you may be able to consolidate and simplify in terms of business banking.
Everyday Business Banking Services
Most businesses probably use an everyday transaction account for receiving and making payments. Debit cards or credit cards can be linked to these to simplify bill payments or to provide travelling staff with payment options.
Many everyday business banking accounts offer chequebook services. You could also have a linked account specially for keeping your GST or a trust account if you work with client funds held in trust.
Merchant services for business are those that enable businesses to accept card payments from customers. The bank can provide you with terminal facilities that facilitate these transactions. Some lenders provide smartphone or tablet apps, which give you the choice of accepting payments on the go.
Specialist Banking Services
1. Online Savers
Other banking products might include linked online saver accounts that offer high interest. Businesses can keep cash that’s not being immediately used in these higher interest accounts.
Business can have an overdraft loaded on their account. This give them quick access to cash flow by enabling their account to be overdrawn (operate in debit) up to an agreed amount. Businesses usually don’t have to make fixed repayments, but interest is charged. While overdrafts are directly linked to the account, other types of financing, such as longer-term loans, are usually separate to everyday accounts.
Some banks offer integration with your business software programs, like your accounting package or business enterprise resource planning software. With these programs, you could download your banking transactions and have them automatically filled into your software package.
Alternatively, some lenders offer online accounting programs with auto-sync features to which you can subscribe. These products will tend to save time wasted on data entry and possibly improve recordkeeping accuracy.
If you use external payment services (such as PayPal), you can also set these up to be linked to your business account.
Keeping it Simple
1. Investigate the Different Products and Services
To keep your business banking as simple and straightforward as possible, get to know the different products and services being offered by banks. You could find out about particular packages that combine certain banking products.
You could do some research online or work with a business banker to find out the options that will best suit your requirements. They can give you advice on consolidating your loans and/or banking products to reduce banking fees and streamline payment processes.
2. Use Online Banking
Most businesses probably use online banking in some form or another. Internet banking centralises control over your payments and gives you flexibility because you can access and manage your accounts at any time of the day or night. You can review and monitor payments through online banking, or make automated payments for absolutely anything from online marketing and advertising, to lease payments and staff wages.