Do you own a business? Have you been searching for business bank accounts to fit the needs of your company?
For a business to succeed, it has to have banking, financial, and accounting needs. But you must understand the different kinds of accounts and the purpose that any of them will serve in your company.
Here’s a guide to help you understand different business bank accounts and which ones are perfect for your business.
The Benefits
Having a business bank account can give you access to capital that you can use to grow your business. This can help to protect you from personal liability if your business is sued.
A business bank account can help improve your business’s cash flow by providing a place to deposit revenue, track your expenses, and receive payments from customers. It can also help you build business credit, making it easier to get loans and overdraft other financings in the future.
Having a business bank account can give your business a more professional image and is a great way to help your business grow and succeed.
Different Kinds of Business Bank Accounts
Here are some of the business bank accounts that can suit your business together with their purpose and set of benefits:
Business Checking Account
It allows you to manage your finances in a more organized way, write checks to pay for business expenses, and avoid paying personal taxes on your business income. Businesses are usually required to maintain a minimum balance, and there may be fees for certain types of transactions.
Business Savings Account
It is a great way to earmark funds for future expenses or investments. It can earn higher interest rates on savings account balances than on checking account balances.
With this, you can easily track your income and grow your savings. But there are limitations on how often funds can be withdrawn.
Merchant Services Account
It is used to accept payments from customers thru credit card payments, offers features like point-of-sale services and mobile payments, and also offers Net 30. This account generally has higher fees than a regular business bank account.
A Net 30 account is used to extend credit to their customers, allowing the business to hold onto the customer’s payment for a set time (usually 30 days) before depositing it into the account.
Business Money Market Account
It earns interest on deposited funds, and offers check-writing and debit card privileges, but may have higher minimum balance requirements than other types of accounts.
Business CD
It offers higher interest rates than other types of accounts, but funds are locked into the account for a set time.
Start Your Business and Grow Now!
Businesses have many different options for choosing a bank and what type of account to open. Different business bank accounts have their own set of benefits and drawbacks.
Luckily, most banks offer free consultations to help you choose the proper account for your business needs. So what are you waiting for? Contact your local bank today to get started.
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