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How to Handle Business Checking Online in 2024

Whether you’re just pursuing a weekend side gig, or you’re running a startup with multiple employees, efficiency is key. There are some pretty advanced business strategies that can help with that, but before you start implementing those, you should make sure you’re getting the basics right.

This includes things like using resources wisely, managing cash flow well, and even outsourcing to specialists when it would help you save money. For example, many companies are able to run their accounting departments much more economically by using online check writing services.

All of these things will have to be taken care of eventually, but for some young companies that’s easier said than done. It’s fairly common for a budding business to be run from personal bank accounts, which isn’t really the best approach.

Even though it may not seem strictly necessary, it’s highly recommended to open up an online business checking account as soon as possible. Not only will this streamline the accounting side of things, but it also has several other benefits.

Take Advantage of Better Customer Support

Online customer support is a boon for businesses of every size since it eliminates the need for in-person trips to the nearest branch. Many banks offer multiple ways for business checking account holders to get in touch – by phone, email, chat, etc.

Integrate Online Banking With Accounting Software

Using accounting software is a must for any business these days, and it can be even more powerful when it’s integrated with your online business checking account. Most major banks offer this service, but if you’re using a smaller regional bank, make sure you double-check before opening up a business checking account. 

When you integrate your online banking with your accounting software, it’s much easier to accurately track and report each transaction. This will make it easier to generate financial data, optimize cash flow, and file tax returns. Not only does this save time, but it also reduces the risk of errors that could snowball into major problems further down the line.

Use Direct Bill Pay

Anyone who’s been involved with an accounting department knows how much time it takes to make sure all the bills are paid. From maintaining key software subscriptions to making sure the utility bills are taken care of, there’s lots of busywork involved.

However, an online business checking account may include a direct bill pay feature (depending on the bank). This can be used for all kinds of recurring bills, from an Adobe Suite subscription to the landlord who provides your office space. If you take advantage of direct bill pay, you could end up saving both time and money, freeing up those valuable resources for other important tasks.

Enjoy Lower Fees

Everyone has gotten charged unexpected fees from their bank at some point. Even if the fees were expected, they still aren’t welcome. Online business checking accounts are one way to lower the amount you pay on bank fees, as many banks offer reduced fees for businesses who open checking accounts with them. Once again, this frees up money every month that can be used for other things. Maybe not that much, but every penny counts!

Customize Access to Online Banking

It’s common for businesses of every size to customize employee access to software programs or banking info. This lets key employees work on necessary projects, without opening up vulnerable data to multiple users.

If you’re just starting your business, you might be the only one who really needs access to your banking information. However, as the business grows and you have to delegate more and more tasks, you’ll end up allowing access to other people.

If you only want them to access certain functionalities of online banking, you can assign individual user IDs and establish which tasks they can complete. For example, you could limit the ability to transfer money, limit the amount of money that’s processed, or only let someone view data rather than make deposits or transfers. Not only is this safer than granting full access, but it also prevents unqualified employees from making mistakes with financial data.

Instantly Transfer Money

You might need to transfer money from checking to savings, or from business checking to personal checking. You may even want to transfer money from your business to someone else who happens to use the same bank.

Most banks make it easy to transfer between accounts, and you won’t even have to wait the standard 1-3 days that ACH transfers take; you’ll be able to watch the transfer go through in a matter of minutes.

Have Peace of Mind With FDIC Insurance

Most banks are insured by the Federal Deposit Insurance Corporation or FDIC. If you use an FDIC-insured bank for an online business checking account, you’ll be automatically insured for up to $250,000 in the unlikely event that the bank fails.

FDIC insurance applies to both checking and savings accounts, so if your business has more than $250,000 total between multiple accounts, the same limit will still apply.

However, the FDIC won’t combine the totals between your business and personal accounts, since your business is a separate entity. This means that you’ll get up to $500,000 worth of FDIC insurance if you have both personal and business accounts, which is a definite advantage.

Use Secure Encrypted Technology

With online banking being more popular now than ever, you can rest assured that even small-time banks are using the latest and greatest encryption technology to keep their customer’s data secure. Whether you’re using the bank’s website or their banking app, you can rest assured that nobody is getting their hands on your data without permission.

The Takeaway

There are many different reasons to get an online business checking account, even if you don’t take advantage of everything it offers. However, if you do, you could find yourself saving both time and money.

It’s much more convenient and comes with a few perks that personal accounts don’t include. Plus, having an online checking account for your business is a great way to make room for future growth.

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