Business Checking Account

When it comes to business checking accounts, it’s especially important for small companies to make smart decisions. Becoming a customer of a reputable financial institution helps lend credibility to your business. Plus, you have the opportunity to keep your personal accounts separate from your business accounts. By selecting the right banking partner, you can access many useful features and benefits.The choices of business checking accounts are wide and varied. You can comparison shop online or visit with a bank representative in person or over the phone.

The benefit of talking with a banker is the help you’ll get in finding the perfectly matched account for your business. And, the banker may be able to help you with any additional financial needs you may have.Top Considerations for Small Business Checking Accounts Features can vary by account. Some accounts require no minimum balance and can be especially helpful for new companies trying to become established. Most accounts provide 24-hour access to funds, online banking, FDIC insurance on deposits, check cards and printed checks in different styles.

To help you get the best business checking account, you should define exactly what your business needs. Then, you can find the banking solution that best meets those needs. You also need to consider working with a bank that can address your current and future requirements. Although you may just need a business checking account today, you will need additional services as your business becomes more established. Developing a good banking relationship early on can be very beneficial to your company’s future operations.Finally, make sure to understand and compare all of the features any particular business checking account offers. For instance, some accounts may offer a variety of additional features like payroll services, invoicing services and merchant accounts.

Additional Features for Business Checking Accounts When deciding on a bank’s services, you may want to consider those banks that have a track record with your kind of business. A bank used to working with small businesses would be a good fit for a business just starting out. Banks with this focus understand the special needs of entrepreneurs and small businesses and can tailor solutions, terms and options accordingly.As mentioned earlier, you should also focus on banks that offer business checking accounts with some value-added services. You may find accounts with free unlimited check writing, free transfers, a free ATM card, free checks and other meaningful perqs.You also want to make sure you have online banking capability. Your business likely works with suppliers, vendors and clients online. So, you need online banking features too.

Things like online billing, invoicing, tax services and more can be very convenient and useful for your small business.Just as it’s important to understand all the features your bank may offer with business checking accounts, you need to understand the associated fees too. Make sure you ask the right questions so you know about any restrictions as well as additional charges.A small business’ banking needs are drastically different from a Fortune 500 corporation. By finding the right bank, you’ll be able to simplify your financial management and have a partner to help you as your business grows.

Good Credit Control Procedures in a Small Business

Credit control is important in a business especially for small businesses. This means that every small business should ensure that it collects its outstanding invoices. Some small businesses in the UK let their uncollected invoices accumulate which ultimately affects their cash flow and also the performance of the general business. This problem can be attributed to poor credit control and lack of knowledge on the benefits of good credit control procedures in a small business.

One of the primary benefits of good credit procedures in a small business is that there will be
sufficient funds to ensure that the business runs smoothly. The outstanding uncollected invoices mean that the business has some money which is deemed to be available but cannot be used in the operations of the business. This is especially a major issue in a small business which might not have enough funds to run the various operations without collecting the outstanding invoices as required. This makes it paramount for a business to ensure that it has set down good procedures of credit control so as to ensure the business runs smoothly with sufficient funds available.

Having good procedures is also important since it enables the business to know its reliable and trustworthy clients. This is because having good procedures in place will enable the business to explain to its various clients when and how the invoices will be collected. The reliable clients will keep to the payment terms and will ensure that the invoices are ready by the time stipulated by the credit control procedure. Through this the business can identify the clients that keep to their payment terms and therefore it becomes easier to extend credit to such clients since they keep their word.

Another major benefit of having a good credit control procedure in place is that the businesses are able to plan properly. This is because a small business with good control procedures will be able to know the money it has and the money to expect. As a result, the business will be able to budget even on the uncollected invoices since the laid down procedure will ensure that the outstanding invoices are collected on time. A business can even get outsourced providers of credit control services who will ensure that all the outstanding invoices are collected on time. Having outsourced providers will give the business time to concentrate on other issues regarding the growth of the business. Furthermore, some outsourced providers even pay for the uncollected invoices and then go ahead to collect the invoices after the stipulated dates. This gives the small business the assurance that funds will be available on time to run the various operations of the business.

Good credit control procedures that enhance collection of a businesses outstanding invoices are also beneficial because it allows a business to control credit limits. Small businesses in the UK should have a limit of the credit to be extended. This means that these businesses should have a limit of the outstanding invoices. When the outstanding invoices surpass the set limit, the business might not be able to extend credit to other clients. But with good credit control procedures the small businesses will be able to set limits and therefore be able to extend credit to other customers and also to those whose outstanding invoices have been collected. Therefore, it is paramount for a small business to have good credit control procedures in place which will enhance their collection of outstanding invoices.