How to Choose the Right Business Bank Account

The right business bank account can do wonders for any entrepreneur. Whether you’re starting a new venture, are an independent contractor, or just have a side gig, a commercial bank account is generally a very good idea. Not only does it help you separate business transactions from your personal purchases, it can also serve as legal protection. So, read on to learn more about how to choose the right business bank account.

Top Business Bank Account Benefits

A commercial bank account makes it a cinch to tracking business expenses. You can monitor spending with ease. Plus, it can also be a big help in preventing overspending. What’s more, having a dedicated business account will be a huge time-saver come tax time (which can be every quarter, by the way).
Business checking accounts can make it easier to separate business spending from personal spending. If you run a small business, are self-employed or earn money as an independent contractor or gig worker, a business checking account is something you may need. But which one is best for you? Just as with personal checking accounts, choosing a business bank account comes down to finding one that offers the right combination of features, benefits and cost. —Forbes.com
Additionally, a business bank account makes your organization look more professional. This, not to mention you can also usually enjoy some personalized and professional services of your own. For instance, having documents notarized for free or a minimal fee. Or, helping you to choose the right business credit card and/or debit card.

How to Choose the Right Business Bank Account

Unfortunately, choosing the right business bank account can also be a bit intimidating. After all, you want to get the most out of it while paying the least (since practically all commercial accounts charge fees). So, here are a few helpful tips to find the best business bank account:
  • Ask about fees and requirements. There are very few business bank accounts without fees and requirements. But, some financial institutions waive one or more fees if the account continually maintains a certain minimal balance and/or has a number of business transactions.
  • Know not all introductory offers are the same. Some banks offer very tempting introductory offers. Of course, these expire, so you want to make sure you understand the exact terms. Moreover, pay close attention to what occurs thereafter because it might well be a lot more trouble than it’s worth.
  • Do your homework. Of course, you can always get recommendations from other businesses. But, don’t just go on their experiences alone. Take some time to research different banks online and see how they perform with the Better Business Bureau. Commercial customer reviews could also tell you a whole lot about how a bank treats its business customers.
  • Compare and contrast. Obviously, you’ll need to stack your possible options up against one another. While one might charge a bit more in fees, it could offer waivers. Or, you could value having several branches because it’s more conducive to your business’ needs. Be sure to go over the pros and cons of each to decide which is the best overall fit.
What other suggestions do you have in selecting a good business bank account? Please share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Fire safety stock photo

How Affordable Fire and Safety Doubled Its Service Division and Landed a Successful Acquisition

Chad Connor started Affordable Fire and Safety in 1998, building a family-owned company that installed commercial and residential fire safety equipment. Over two decades, AFS became a trusted name in the industry — but by the time Chad brought in outside help, the business was carrying an underperforming division, tight cash flow, and no clear plan for what came next. “I hired John with WBCG in February of 2019. We now have much better cash flow, we just had our best month ever (both top and bottom line) and we believe that better months are in our future,” said Chad Connor, Owner of Affordable Fire and Safety. “John’s team will provide a business with the resources needed to grow. We meet weekly and it forces me to focus on my business and not just get wrapped up in the day-to-day. Now that we are getting a firm grip on establishing our processes, my stress level has decreased dramatically and I’m starting to enjoy my business again.” A Business With Room to Improve AFS needed help across several fronts at once. Operations, processes, and procedures had room to tighten up, and gross margins and cash flow both needed attention. The company’s construction division was underperforming, dragging on overall results, and there was no exit strategy in place despite Chad’s long tenure running the business. Revenue performance needed improvement, EBITDA and business valuation were both low, and the company’s culture needed real investment. Fixing the Fundamentals First Waters Business Consulting Group leaned on John Waters’ own experience operating, building, and growing construction businesses, applying it directly to how AFS managed jobs and job costing. The team established a baseline for days of sales outstanding (DSO) and worked with the entire team to track the leading indicators that would move that number — and the cash flow behind it. Key performance metrics were tied directly to performance-based compensation plans, giving technicians a real incentive to improve efficiency. Alongside the numbers, the team worked with AFS to refine workflow processes across the organization. Better Margins, a Bigger Service Business, and an Eventual Sale The results showed up quickly and then compounded. DSO improved from 46 days down to 35 days, driving cash flow improvements substantial enough that Chad was able to take a full month away from the business — something that would have been unthinkable before. The team also worked alongside Chad to hire a qualified new Operations Manager, and today AFS has stronger people and a stronger culture, built on real standards for technicians. An Efficiency Tracking Board helped technicians become more productive, driving up gross margins. After identifying the construction division as a drag on the business — its low gross margins were working against AFS’s growth goals — the team helped Chad make the strategic call to close it and redirect those resources into the Service division. That division has since doubled in revenue,  and gross profit margins trending toward 40%. Waters Business Consulting Group also worked with Chad on a strategic buyout plan with his business partner, continuing to grow toward a $10 million annual revenue target. The strength of that turnaround ultimately made Affordable Fire and Safety an attractive acquisition target, and with Waters Business Consulting Group’s help, the business was successfully acquired by Marmic Fire & Safety in 2021. Ready to Fix Your Fundamentals? Sometimes the biggest growth opportunity is cutting what isn’t working and doubling down on what is. If your business needs a clearer picture of its margins, cash flow, or exit strategy, a free consultation is the place to start. Contact Waters Business Consulting Group to schedule your free consultation.

Read More »
Girl stock photo

How to Avoid Decision Fatigue; Wait, Avoid What?

Ever notice your decisions get worse as the day wears on? There’s a name for that, and it’s not just in your head. Researchers found judges granted parole to 70 percent of prisoners who appeared in the morning — and just 10 percent by mid-afternoon. Decision fatigue is real, and it’s probably costing your business more than you think. Here’s how to fight back.

Read More »
Integrity Capital photo

How Integrity Capital Quadrupled Revenue With the Right Accountability Partner

.elementor-widget-text-editor{font-family:var( –e-global-typography-text-font-family ), Sans-serif;font-weight:var( –e-global-typography-text-font-weight );color:var( –e-global-color-text );}.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:var( –e-global-color-primary );}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap, .elementor-widget-text-editor.elementor-drop-cap-view-default .elementor-drop-cap{color:var( –e-global-color-primary );border-color:var( –e-global-color-primary );} In the summer of 2003, Dave Kotter left a commercial real estate lending company he didn’t enjoy working for and started his own: Integrity Capital. Over the next decade-plus, he built a solid book of business the hard way, through relationships and hustle. But by 2016, Dave hit a wall familiar to a lot of founders — he knew he wanted to grow, and he knew the tools to get there weren’t in his own skillset. “The greatest value I’ve gotten from John is accountability and synergy,” said Dave Kotter, Owner of Integrity Capital. “I wanted more than a coach. I needed to work with someone that not only would hold me accountable but also have the experience necessary to build an infrastructure to help me grow the company.” Ambition Without a System Dave had the drive to grow Integrity Capital, but not a clear next step. The specific mechanics of scaling a commercial lending business — the systems, the org structure, the metrics — were outside what he’d built himself to do. There was no reliable way to track and measure what was working, no dedicated team to run day-to-day operations, and no built-in accountability to keep the business moving toward its goals. Dave had worked with a business coach before, but never with a full-fledged consultant who could actually help build that infrastructure. He knew John Waters and respected his work ethic, character, and integrity — a fitting match for a company built on the same value. Building the Machine Behind the Business Waters Business Consulting Group started by taking an honest look at Integrity Capital’s past financial performance, then used that baseline to build a financial forecast model Dave could actually plan around. From there, the team developed a Strategic Growth Plan and helped Dave prioritize his day-to-day activities so they aligned directly with that plan, rather than pulling in a dozen different directions. An organizational chart gave the business clear operational responsibilities for the first time, paired with key performance metrics tracked every single week. To keep momentum and accountability in place, Dave and John met for weekly 90-minute sessions — a cadence that kept Integrity Capital’s growth plan from becoming another good idea that quietly faded. Quadrupling Revenue, One System at a Time The infrastructure work paid off directly in the numbers. Over more than two years of partnership, Waters Business Consulting Group helped Integrity Capital roughly quadruple its top-line revenue — growing from $223,000 and trending toward $650,000. Behind that growth was a full work-flow map of the entire client life cycle, which gave Integrity Capital transparent processes, procedures, and key performance indicators for the first time. Just as important, Dave finally had clarity and accuracy on the health of his pipeline, which meant more predictable, more objective decisions instead of gut calls. With key talent added to the organization alongside those new processes, Dave was able to start stepping back from the daily grind of running the business and redirect his time toward bigger, more strategic opportunities — the work only he could do. Want This Kind of Accountability in Your Business? Dave’s story is a common one: talented owners who know they want more, but not exactly how to systematize their way there. A free consultation is the place to find out what that next step looks like for your business. Contact Waters Business Consulting Group to schedule your free consultation.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.