Opening a Business Bank Account and the Common Mistakes to Avoid
When you start a business, the objective is to increase your income. This also means having the right place to keep your income and see it grow with your business. Opening a bank account is vital as it helps you get organized and focused on your business. But before you open a business bank account, here are the common mistakes to avoid.
Choosing the Wrong Bank for Your Business
There are many different banks you can consider and open an account with. However, many small business owners choose the same bank for their personal and business needs. This is a mistake that might limit you financially. Meeting your business needs becomes hard as most consumer banks don’t offer the services you need. You should deal with separate banks for business and personal financial needs.
Failure to Maintain the Minimum Monthly Balance
The terms tend to differ with the banks when you want to open and maintain a business account. Most banks will dictate you maintain a certain amount in your account as the minimum balance. They also offer monthly fee waivers if the account balance stays above the minimum requirement every day. So, before opening a business bank account, seek to understand the minimum monthly balance and, if you can manage, to uphold it.
Providing Incorrect or Missing Information at Account Setup
This is a common mistake that small business owners make when setting up an account. Avoid, at all costs, providing or bringing the wrong paperwork to your account setup appointment. Note that most banks have different requirements. So before you head to your appointment, get organized and be ready to provide the needed information. From the information you provide, you can establish trust and confidence in the bank as a customer.
Not Planning Check-Signing Authorities
If you have a joint partnership in your business, you might want to open a joint bank account for the venture. This also means finding and approving the signatories for fund deposits or withdrawals. Before opening the business bank account, ensure you have the right check-signing authorities and maintain them.
Ordering the Wrong Checks
Ordering the wrong checks is surprisingly a common error among small business owners and entrepreneurs. Before you open a business bank account, ensure you state and spell the right company name. Note that the name you state and utilize should be the entity’s legal name.
Opening a business bank account can be overwhelming when you lack knowledge. For proper professional guidance, call or visit Masters Commercial Capital Group.