Introduction: Best Small Business Bank Account and Best Small Business Checking Account
Owning a small business usually brings its fair share of headaches. Trying to successfully manage a crew of employees, an unstable cash flow, a demanding landlord, and a whole host of other challenges that unexpectedly show up can be frustrating to say the least.
Finding the best small business bank is one way to help small business owners deal with the stress of entrepreneurship.
Small business banking and the best small business accounts offer a number of helpful financial tools to simplify the money management of small businesses.
While many startup business owners may opt to simply use their personal checking account while their business gets going, not having a separate small business checking account offered by one of the best banks for small business checking can quickly lead to financial confusion.
Since almost every financial institution offers the supposedly best bank account for small business, how do you know which best small business bank to choose?
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In this brief article, AdvisoryHQ will look at why small business accounts are offered as well as how a small business account can help your company financially. We will also consider the different characteristics that the best small business checking account should offer.
We will then review three of the best business bank accounts for small businesses, including the Wells Fargo small business account, Chase small business account, and Bank of America small business account.
Why the Best Small Business Accounts Are Only Offered by Banks Specializing in Small Business Finance
The best bank accounts for small businesses aren’t offered by any anonymous bank. While most of the big-name banks will offer some sort of small business checking account, the best small business bank account will only be offered by banks that specialize in helping small businesses.
While some of the mega banks focus exclusively on corporate accounts and large businesses, others have small business accounts that are specifically tailored to the realities faced by companies that operate locally.
For example, while normal business accounts may have extremely high minimum balance requirements, the best small business checking accounts should understand that a local startup company probably won’t be managing large cash flows in the beginning and thus waive any sort of fee associated with account minimums.
When you are searching for the best business bank accounts for a small business, it is a good idea to ask the bank about the features of the account and how these features can specifically benefit small business banking needs. You can also search the Internet for reviews of the best small business accounts to find independent opinions from other small business owners.
Lastly, while small local banks and credit unions may be able to offer you the best bank account for a small business, larger banks that offer some of the best small business bank accounts can usually offer certain features to help your business grow. These banks obviously have more of a national presence to help you expand your clientele base beyond your local community.
Furthermore, the best banks for small business checking should also offer mobile banking apps that include everything from mobile check deposit to mobile payroll management. Oftentimes, smaller local banks simply don’t offer these options on their best business bank accounts for small businesses.
What Small Business Banking Can Do for Your Company
Mixing your personal finances with your business expenses is never a good idea and will likely lead to confusion quickly. The best small business bank account, by helping you keep your personal and business finances separate, will allow you to keep better track of how your business is progressing.
This is important especially when tax season rolls around. By maintaining your business expenses separate from your personal expenses with a small business checking account, you may be able to apply for certain tax refunds and deductions for your small business.
A small business checking account should also offer a number of tools to help you monitor your business’s performance. Monthly statements are obviously one element that all small business accounts will offer and that will help you oversee your expenses and income. However, you will likely need other simple accounting tools that will help you keep track of your cash flow and invoices as well as allow you to accept payments online.
The best small business bank account should allow you to link certain accounting software directly to your account. Since much of the current accounting software is cloud-based, the mobile banking features offered by the best small business bank of your choice should also allow you to link this software to your account.
It will simplify your accounting procedures, allow you to do most of your accounting from the comfort of your home or office, and also simplify the receipt of online payment.
To name just one example, FreshBooks is one such online accounting software that can help you with your accounting needs. If your small business checking account is permitted to be linked to this software, you can benefit from report generation, payroll processing, payment processing, and time-tracking features.
What the Best Small Business Checking Account Should Offer Your Company
The most important aspect of any of the best business bank accounts for small businesses is that they don’t charge excessive fees or penalties to open or maintain a small business checking account. According to bankrate.com, “Rather than maintain a monthly minimum balance…some banks simply require owners to enroll in online bank statements or use a business credit card for a minimum number of purchases each month.”
Though most of the best business bank accounts for a small business will charge some sort of monthly fee, they should also offer ways to get out of paying those fees. Whether it be minimum balance requirements, signing up for a simultaneous business savings account or using a business debit or credit card, the best small business bank shouldn’t add another monthly expense to the already long list of expenses your small business likely has.
Furthermore, the best small business bank account should also allow you to empower your employees. Delegating responsibilities is one of the most essential tasks that a small business owner needs to learn.
Trying to micromanage or maintain control over every aspect of your business can quickly lead to burnout. Allowing a trusted employee to sign checks is one way to free you from excessive responsibilities. The best business bank accounts for small businesses should allow you to easily make changes regarding who is authorized to sign checks for your business.
Also, the best small business bank should have a wealth of accumulated experiences with small business bank accounts and how these accounts can help small businesses succeed. When searching for a small business checking account, ask the bank if it has a business banking representative who will willingly offer advice.
Bankrate.com advises that the best small business bank should make these representatives available to small business owners. Furthermore, “Business banking representative can be a strong networking resource. Opening a business checking account in the early stages of your business can help you capitalize on that relationship.”
Lastly, the best small business bank account of your choice should also allow your business to accept plastic as payment. In our increasingly cashless society, many consumers simply won’t visit your business if you only accept cash or checks.
The best business bank accounts for small businesses should allow your company to accept or decline plastic payment options, such as credit cards and debit cards. While these services may come with additional fees, the best small business bank should allow you to offset some of these fees if you meet certain requirements.
Best Business Bank Accounts for Small Businesses
Though there are hundreds of banks out there all offering the supposedly best small business bank account. We have reviewed three of the best business bank accounts for small businesses offered by big name banks below.
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Wells Fargo Small Business Account
The Wells Fargo small business account is one of the best small business bank accounts out there. With over 6,000 branches nationwide, you can easily expand your business into additional markets without having to search for another small business checking account in your new location.
You will need to maintain a minimum balance of $7,500 to qualify for no fees on your small business checking account with Wells Fargo. The Wells Fargo small business account allows for QuickBooks integration and also has a quality mobile banking app features.
However, with the Wells Fargo small business account, you will have to pay a 0.3% fee on physical cash deposits over $7,500.
Chase Small Business Account
One of the best small business banks is actually one of the nation’s largest financial institutions. The Chase small business account can help your business grow into a successful company. It offers a number of different options for small business checking accounts, depending on the size of your business and your cash flow. A helpful tool to compare the different small business checking accounts offered by Chase can be found on its website.
For smaller businesses, the Chase Total Business Checking is most likely the best small business account option offered by Chase. With this account, your business will benefit from:
- “200 transactions per month without a fee
- $7,500 in cash deposits each month without a fee
- $50,000 in cash deposits and withdrawals per month (cannot exceed $50,000 for 4 months in a rolling 12 month period or the account may be converted)
- Permits incoming and outgoing domestic wires”
This Chase small business account is one of the best business bank accounts for small businesses because it will also allow you to upgrade your account as your business grows.
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Bank of America Small Business Account
The Bank of America small business account is another of the best business bank accounts for small businesses. With the Bank of America small business account, you only need to maintain a $5,000 average monthly balance to waive the monthly maintenance fee which is less than the other two best small business banks reviewed above.
Furthermore, the Bank of America small business account also offers your business a debit card that is designed for your employees to use. This feature can help you better delegate tasks to certain trusted employees. Also, with this small business checking account, you get 200 free monthly transactions and up to $10,000 in free physical cash deposits.
How the Best Banks for Small Business Checking Can Pay Huge Dividends for Your Company
Taking the time to research the best business bank accounts for small businesses can help you save money every month. Also, the best small business bank can offer important tools and advice that will help your business grow into a successful, profitable company. Whichever best small business bank account you eventually choose, make sure that you understand all of the potential benefits that it can offer your business.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.