Best Banks For Small Business
How do you choose the best bank for your small business? Let’s get into my favorite steps to decide what bank is best for you!
People ask me ALL the time about the best banks for small business. And truth be told, deciding on the best banks for your small business is actually a pretty big decision.
 
Now, I’m not saying that once you made a choice you’re stuck for life. But if you decide that the bank you chose wasn’t the right fit for you after all, it can be a HUGE hassle to switch to a new one.
 
I’ve helped clients move through the bank-switching process, and have felt much of the pain and hassle right along with them!
 
So ideally, you’ll choose a bank that will work for you from the start, and avoid a lot of the pitfalls of changing.
 

Now, I’m sure you’re wondering how to choose the best bank for your small business. So I’m going to walk you through my three-step process so that you can make the best decision possible!

 
In creating these three steps, I’ve included my professional opinions on banks that integrate easily with accounting software. I’ve also surveyed my clients and community to ensure that I included their real-world human experiences with my professional theories.
 
(Because sometimes we accountants can be a little stale getting wound up in theory. Believe it or not, we were taught that this is just part of being an accountant!) 

So let’s make choosing the best banks for your growing business as simple as possible! Here are my top three steps to find the best bank for your small business: 

 

Step 1:What are the fees vs. the perks for this bank?

Some business accounts are free. Others charge a fee or require a minimum balance. This might sound appealing if you have a budget of $0 right now. But what if they don’t offer what you need as your business grows?

So, to get an idea of what you might need as you grow, ask yourself these questions: where you want your business to be, and what things will you need your bank to do to help you get there? 

Then, assess your needs and go back to the “fees vs perks” question.

Have no idea about either of these questions? No worries! Start with this list of considerations and go from there:

  • Does this bank offer credit card merchant services (i.e. accepting credit card payments) with ease? If so, do they take American Express? 
  • Do they offer access to business loans–or even better, lines of credit?
  • Does this bank accept international payments? If so, what are the wire fees and restrictions?
  • How about this bank’s identity theft plan?
  • Does this bank have ample ATM access, and do they reimburse ATM fees?
  • Do they have an app to deposit checks online?
Be as proactive as possible, and you’ll save yourself a lot of time and frustration in the future.
 
 

Step 2: Assess your bank’s functionality.

You can imagine that after 12-plus years of balancing books I have worked with MANY different banks. I’ve literally had experience with banks all over the world.

 
So I can tell you that there is nothing more frustrating then working with a bank that has an online system of a wooden table. NOT helpful in these days and times!
 
So be sure that your bank has the functionality you need to get things done.
 

Here are some of the basic skills your bank should have:

 
  • Access to online bank statements, with at LEAST access to your last 12 statements. Some banks don’t have this function. I’ve even seen banks that only allow you to go back three months, and charge you for anything older. So if you didn’t save your statements, you might have to pay later to get them.
  • Your bank should allow admin access. If you ever want to delegate your bookkeeping, your bookkeeper should have secure access to your account. Admin access only allows your designated person to review statements, so it’s a secure way to delegate tasks without compromising your account. So be sure your bank has this function available.
  • Lastly, your bank should have the QuickBooks Online download option. Most accountants work with Quickbooks. Having QuickBooks up and running will save you money down the line when you hire a bookkeeper because it saves a lot of time (and we charge by the hour). So be sure that your bank is QuickBooks compatible!

Note that the answers to these questions can be found either on your bank’s website or answered by a customer service representative. Don’t be afraid to give them a call if you have any questions!

 

Step 3: Consider the your relationship with the bank.

There is this cool term called SRI, or “Socially Responsible Investor.” It’s fancy way of saying “put your dollar where your vote is.” So what does this mean?

While some of the bigger banks are appealing, they might not support some of your views, morals, or beliefs. It might be important for you to investigate what your banks stand for before you say yes.
 
For example, I had one client take her money out of a big name bank because they didn’t support gay rights. As a gay person herself, that was her right. She voted with her dollar.
 
So, I encourage anyone to use their dollar as a voting tool. Even and especially with banks.

The second part of the “relationship” question is this: what kind of a rapport do you have with the people who actually work there?

Because even though things are done predominantly online these days, there will be times when you need to speak to a real person. This includes getting advice, a break in fees, or other such assistance. It’s that human relationship that will support your growth like nothing else!

 

Now, here is a short list of Banks that I myself or my business savvy friends have recommended:

Also recommended would be your local Credit Union. Credit Unions often have fantastic perks!

Don’t be too quick to go the cheap and easy route because you’re in a hurry. Take your time making good decisions for you and your business as it is today. It’ll set you up for the tomorrow you want for your business! 

So there you have it! My simple steps to determine best banks for small business, and how you can apply it to YOUR small (and growing) business. 

Now, how about you? Do you have a preferred business checking account not listed here, I’d LOVE to hear what you recommend and why!
 
Until next time,

Love, light, and MONEY, Honey…

Kaylee

 
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