Crucial Tips for Getting the Most Out Of Your Business Banking Account

If you’ve recently started a small business, welcome to the club. It’s a club that’s gotten a lot bigger recently: A record 5.4 million new business applications were filed in 2021, up from the previous record of 4.4 million in 2020. While most small business owners first focus on aspects of their strategy like their business plan, marketing and website, they might be inadvertently overlooking a key success contributor – and that’s developing a thriving relationship with a bank.

Here’s everything you need to know about reaping the benefits of the right business bank account and relationship.

What should a business banking account offer?

All too often entrepreneurs rely on their personal account to conduct their new business, especially at the start. But if so, they are missing out on a host of benefits that a business account can offer.  Not sure what services you might need? It’s wise to choose a bank that offers a wide variety of features and programs so you can access them down the road, even if your fledgling business doesn’t need them quite yet.

Here are some features and services to look for as you evaluate a business banking account:

• Flexibility: One size doesn’t fit all, so you want to work with a bank that offers multiple choices. For example, at First Midwest you can choose from accounts that range from 100 to 350 free transactions each month, so you can match your needs with the product that’s right for you. Consider a savings component that makes it easy to access your money, while still providing a competitive interest rate. Look for fee-free accounts that reward you for keeping your balance at a certain level.
• Robust mobile and online capabilities: Most business owners work long and sometimes crazy hours, taking care of tasks like banking whenever they have a free minute. So why be tied down by regular banking hours? With Business Mobile Banking and Express Online Banking you can handle financial management tasks whenever (and wherever!) it’s convenient.  
• Treasury management services: Your long-term success relies on meeting your financial goals, which is why treasury management is such a key component of your business’ health. Look for a bank that has a team of dedicated treasury management experts who can help you optimize your cash management strategies, through accurate and complete financial data and more efficient payables and receivables, along with fraud protection and even international services.
• Payment choices: The right debit card streamlines spending. Look for offerings that support convenient expense monitoring, such as daily limits for point-of-sale purchases and ATM withdrawals, real-time travel expense viewing and the ability to monitor for unauthorized purchases. Issuing separate cards for each employee cuts down on time-consuming expense reporting and allows you to track and account for their expenditures.
• A wide range of loan options: Most small businesses need access to capital, whether it’s for startup costs or expansion. A solid relationship with a small business banker means you can get advice on the right loan products for you as they walk you through each avenue and its related pros and cons.

Enhance your business through savvy use of banking tools

Once your account is set up, you’ll want to make the most of it. Here are four benefits you can realize with the right business banking account.

1. Manage finances on the go.  

Through the online portal or mobile app, you can easily handle important banking tasks, like reviewing account activity, paying bills, transferring funds and making mobile check deposits at your convenience. With Business Express Online Banking you can also make secure wire transfers and originate secure ACH transactions. Staying up-to-date on your cash flow means you can make changes as needed to consistently optimize your company’s financial situation and maintain liquidity.

2. Streamline tax accounting and reporting.

Separating your business and personal finances is vital for many reasons, but one of them is that it becomes easier to track activity that could lead to tax write-offs. With Business Express Online Banking, you can download account information directly to your accounting software, which simplifies your tax reconciliation and reporting.

3. Protect your business from fraud.

The Association of Certified Fraud Examiners (ACFE) found that fraud has been on the rise since the start of the pandemic, with 71% of respondents expecting the level of fraud to continue to increase. While it’s critical to stay vigilant by only using protected WiFi services, choosing strong passwords and not clicking on suspicious links, any business can use a helping hand. That’s where Old National’s Fraud Mitigation Services can help deter check and electronic payment fraud with strict controls and active monitoring. To provide an extra level of protection, the bank has partnered with IBM to offer its Business Express users free access to Trusteer Rapport, software that adds an extra layer of protection from malware and financial fraud.

4. Talk to your lender about business financing to help your business grow.

You need a banker who fluently speaks the language of small business and can help you access the capital you need, whether you are using it to expand your products and services or upgrade your equipment. They can help you understand the differences between traditional business loans and SBA loans so you can obtain the financing and terms that best suit your financial situation and long-term strategy. Another appropriate option could be a revolving line of credit that can help support your ongoing working capital needs.

 

Want to learn more about how Old National Bank can help you achieve your business goals today? Click here to get connected with a small business banker or make an appointment to visit one of our convenient local branches to get started.