Your choice of banking services is a fundamental decision that will have an enormous effect on the success of your small business. Starting a small business is a stressful enough experience as it is without having to worry about your banking package; this is why making the right decision early on is advisable. If you can create a settled financial platform for your small business, this foundation can be the perfect starting block on a path to success.
It may be an added worry as you attempt to sort out business premises, suppliers and employees but if you can find the right banking package early on, it is a factor that will essentially look after itself. So if you are starting a small business; read on and find helpful advice to aid your decision of which banking services to opt for.
If your small business is operating as a limited company you will definitely need a business account. It may seem like an inconvenience but when it comes to the time of your of tax returns, you will bless the decision to utilise a specialist business banking package. A business account means that you finances will be easily read, with dedicated statements and reports it will be possible for you to easily cross reference transactions giving a clear picture of income and expenditure.
If you are starting a small business for the first time you should definitely make use of the bank's small business banking team. These advisory services may come at a premium but it will be well worth while in terms of the experience you will gain. The small business advice you will gain access to as a business banking customer usually offers a great deal of support for those starting a company, pooling years of knowledge and experience, passing this on to you. Arguably, these advisory services are a brilliant way to gain impartial advice that comes at a small premium to your existing banking charges.
Charges in particular should form a large element in our choice of banking package. Often the initial offers given to small business are temporary and subsequently an in depth study of how the charges will change after the interim period should be made. It is often the case that banks will attempt to lure small business customers with high interest rates. In the main these should be avoided, it is rare that a business will receive enough revenue to generate the interest promised by the banks early on. Instead of interest rates your main concern when signing up to a bank account should be the charges you will incur in the long term.
Most banks, in addition to the small banking advice teams will offer your business other services that form part of your baking package. At this stage you should take into account how your business will make best use of these services. For instance, if you operate out of working hours, telephone and internet banking options can be considered an ideal way to have access to your finances. It is worth checking however if these services come at a premium or are included in your basic monthly charges.
After considering these factors when selecting your account package it is time to choose a bank, try and gain as much information on the bank from friends, colleagues and family before opening account. With personal recommendations you will be able to make a well informed choice. After all the considerations have been made, head to the bank ad build a rapport with your account manager. By following this advice you will be able to construct a solid financial platform for your small business.
Financial expert Thomas Pretty looks into the importance of the right small business banking package for those starting a company.