One of the first things you need to do when opening a business is to set up a bank account. Good accounting practice dictates that you separate your personal bank account from your business account. This will enable you to properly monitor all business-related disbursements as against your personal expenses.
[related|post]Setting up a bank account is easy, but determining the right bank for you requires some effort. You need to shop around and compare bank services, just as you would when buying consumer goods.
In any case, there are many options and banking services available today that can help you manage your cash efficiently. They range from basic saving accounts to investment instruments, payroll processing, accounts payable processing, online transactions, and even insurance services that can support your business operation.
LOOK FOR THE RIGHT FIT
So how do you look for a good bank? First is to find out which bank actually meets the banking requirements of your business. The right bank is one that will help you secure the best deal and avoid hassles and unnecessary expenses.
For instance, if your business requires you to transact with other countries such that you need to travel a lot and need to access your cash anytime, you should be looking for a bank that has a global presence. On the other hand, if your business is locally based and you have a strong need for personalized service from bank staff, then a small bank may suit you just fine. A lot of times, though, small-business owners prefer smaller banks because they are often friendlier.
CONSIDER THE LOCATION
For instance, if you will be handling a lot of cash, look for a bank closely situated to your office or to your store. This way, you can access the bank easily when you need it. You may also need to consider the different banking hours of the banks near you. In the Philippines, banking hours normally end at 3:00 p.m., but there are banks that are open for business from 10:00 a.m. up to 7:00 p.m.