In this day and age, moving your business online is what can take it to the next level. Having a separate bank account for your business and choosing to bank online can free up your time, make your product more accessible to your customers, and allow you to expand your business.
Why Have a Separate Bank Account for Your Business
Every business owner should have a separate bank account for their business. Separating your bank accounts will make your business banking easier to track, helping out at tax time and ensuring that no payments get missed.
It also keeps your personal funds and spending separate from business profits and expenses. This will allow you to monitor the salary you give yourself and ensure that you always have enough in your business account to cover day to day costs and any unexpected expenses.
The Benefits of Small Business Banking Online
The easiest and most efficient way to do your small business banking is online. Being able to run your business account from your mobile device makes it accessible from wherever you are. This makes online banking especially useful for small business owners that are on the move, such as plumbers and other similar tradespeople operating in the Sunshine Coast area.
With small business banking online you can easily move money between accounts, saving time and money in withdrawal fees. It also allows you to set up time-saving automatic payments so that you never get an overdue bill again.
Online banking also makes things easier come tax time as it automatically keeps accurate records that you can export at any time. This feature is also useful to help track the progress and profits of your business.
Things To Consider When Switching To Online Banking
When choosing to make the move to online banking, there are a few things to consider that could make the process easier.
First, think about what it is you want to achieve from online banking. Do you need to be able to manage your banking on the go? Do you want to be able to quickly move money between accounts without incurring a fee? Do you want to use Bpay, or withdraw cardless cash? Come up with a list of what you need before you start your research.
Next, do some research on the options your current bank offers when it comes to online banking. If they supply everything you need and provide an easy-to-use system, you may not even have to change banks to go online. If your current bank doesn’t offer what you need, have a look at what is on offer from a range of banks and credit unions and do a comparison on what each financial institution has to offer you. Compare account and online banking system accessibility, fees included for service, transaction and monthly account keeping fees and check out if there are any account restrictions, for example limited number of transfers or deposits per month. Also is it compatible with your accounting software?
One of the biggest advantages to small business banking online is bank feeds. Bank feeds will automatically import your account transactions into your accounting software. This saves you hours of manual data entry thanks to bank feeds automatically linking up transactions with invoices. This will save both you and your accountant time, which ultimately saves you money.
Switching to online banking will also allow you to level up by accepting EFTPOS payments from your customers. Many banks offer EFTPOS which can reduce the amount of cash kept on-premises, and portable EFTPOS options are perfect for immediate payment on the go. One thing to consider is the fees. Consider charging extra and make sure using EFTPOS won’t result in a net loss for your business.
By moving your transactions online, you also can consider setting up automatic payment plans for your customers.
This concept allows your customers who need your product immediately but don’t have the cash on hand to purchase from you to take the item on the day. The options of payment plan providers are constantly increasing but the main providers present in the market are Afterpay and Zip Pay. By having this option available to your customers, allows them to take the item purchased with them on the day and you receive the funds immediately.
The customer enters into an agreement to repay the item as agreed between the payment provider and the payment provider is responsible for all the risk of missed payments.
Have you ever considered selling your products online? Online banking can make this happen. If you don’t have any of your own products to sell online, you could drop-ship products that are related to your services. For example, a cleaner could sell cleaning products they recommend on their website. You could also sell subscriptions, newsletters, or services online.
Where To Sell Online
Want to start selling things online, but have no idea where to start? There are many tools such as Paypal, Stripe, and Square that let you take payments online through your website. If you’re looking to set up an online store, you can set up eCommerce stores such as Shopify and WooCommerce.
Setting up a separate, online bank account will allow you to level up your small business. Not only will you save time and money by streamlining your small business banking, but you will also be able to expand and grow your business.
To learn more about online banking and eCommerce solutions, check out Module 5 of our free digital upskilling program Level Up. The free course will take you through everything you need to know about online banking and ecommerce solutions for small business and how you can use them to your advantage.
Please note; this information is general in nature and all financial matters relating to your business should be discussed with an accounting or finance professional, allowing you to make an informed decision.