When you are starting out as a business owner, banking charges might be the furthest thing from your mind — until they start to add up! Get ahead of the game with these cost-saving tips, before you even open your business bank account. Take control of your business finances today by choosing the most useful type of bank account, opting for cost-saving features and making full use of the benefits available through your bank. These practical tips will give you a head start and help you to optimize your savings as your business grows, according to /discover.rbcroyalbank.com.
Save on business banking accounts
Open a business banking account that offers flexible transaction limits and low, tax-deductible fees charged only when you use the services. Streamline your accounting and keep your banking costs down by choosing an account that helps you track your business expenses. Find out whether you require a minimum balance to avoid fees, and maintain that amount in your account.
Sign up for online banking
Online banking and electing to receive electronic statements from your bank is not only more environmentally friendly, but it can also save you fees if your bank charges for paper statements. Additionally, some banks offer financial incentives for changing to paperless billing. A banking association had reported that 83 per cent of consumers feel online banking adds value for them.
Pay your bills electronically
A report showed that 68.3 per cent of a community now use electronic payment options. This growing trend can help save you time and the hassle of paying manually. Using your bank’s online bill payment solutions will help you pay on time, building both your business’s credit rating and your reputation. Make the most of payment discounts for on-time or early payments, set up alerts to ensure you have funds available when payments are due, and consider getting overdraft protection to avoid cash flow challenges.
Accept electronic payments
Offering your customers ways to pay you electronically can save you time and money on reconciliation. Receiving payments electronically means your will receive (and can use) the funds sooner. If you need payment processing or e-commerce options, you can obtain access to these additional services through your bank.
Use a business credit card to track expenses
With a business credit card, you can track company expenses and earn points or get cashback for your purchases. Pay your credit card balance in full within a week or two, to avoid accruing interest. Take advantage of any rewards programs available for the credit card you choose. You’ll accumulate points that you can use as a payment towards your credit card balance, or for benefits such as airline miles.
Search for a business bank
Searching for a business bank account is an exciting yet crucial step that every small business owner ought to take—ideally sooner in their business’s timeline rather than later. Whether you are a new business that is just starting up and you need a business debit card, or you are a well-established business looking for a way to earn for your savings, you’ve got quite a few decisions ahead of you. Because this is such a vital decision for your business is finances, it is crucial to know what you are doing when you are sifting through all of your business bank account options.
Before you open a business bank account, make this initial decision;
First thing is first, you will need to decide which kind of business bank account you want to prioritise in this search. Do you want a business current account or a business savings account? Though these two types of business bank accounts are certainly not mutually exclusive—in fact, they work wonderfully together—you will need to decide which type of business bank account you want to look for at this very moment. If you are looking for a home for your business’s working capital cash flow that allows your money to be easily accessible, then you are looking for a business current account. On the other hand, if you are looking for a way to store your business’s money away to save and even earn for it, then you will want to look into your business savings account options. Generally speaking, newer businesses that are just starting up will likely be in more need of a business current account, while businesses which are well-established with a lot of cash on hand will likely be in search of savings accounts. Plus, a business current account is a business fundamental, while a business savings account can often be taken care of leisurely. That said, there are both business savings and current accounts out there that can serve businesses of all shapes and sizes.