4 Mistakes Every Business Owner Should Avoid When Opening a Business Bank Account
The best thing any business owner can do before they open their doors for the first time is to separate their personal finances from their business finances. The easiest way to do this is to open a dedicated business bank account as soon as possible. While the process itself is fairly simple, there are some mistakes that business owners make when opening a business account that can delay your ability to take payments. Here are a few of the most common mistakes and what you need to do to avoid making them yourself.
1. Not Entering the Right Information
When you’re setting up the business bank account, you need to double-check the information you’re entering into the bank’s system. Make sure your name, address and business information are all correct before you submit each document. If you notice any errors after opening the account, contact the bank as soon as possible to correct them. Leaving inaccurate information in place can make taking care of your finances difficult in the future.
2. Forgetting To Add Key Partners to the Account
If you have multiple partners or managers that need access to the business’s account, you’ll need to give their information to the bank. This will give them the necessary clearance to make deposits, write checks and manage the funds as needed. If you don’t give their details to your bank, they won’t be able to access the money or make payments on behalf of your company. Those delays can make it difficult for your company to grow and maintain a positive reputation in the community.
3. Picking a Bank That Doesn’t Meet Your Needs
Not all banks are the right fit for small businesses. You need to choose a bank that you can trust and one that can help your business as it grows. Do your research and choose a bank that offers the types of services and accounts that your company needs. Remember, it doesn’t have to be the same bank you use for your personal account.
4. Ignoring the Minimum Balance Requirements
Many banks have minimum balance requirements in place even for business accounts. Before you agree to open an account with any financial institution, make sure you understand their requirements. If the account requires you to maintain a minimum balance and you fail to do so, you’ll end up having to pay a fine every time it happens. Over the course of the year, this could add up to hundreds of dollars that you could better use to invest in your company.
Avoid these mistakes when opening a business bank account for your company.