Most businesses rely on some features of a business bank account more than others. When other features are used, they’re more of a novelty than a necessity, which suggests banks can market certain capabilities and guidelines more than they actually get used. Unfortunately, most business owners discover which features they rely on most after the fact, with many features initially thought to be essentials easily dismissed as fluff once the account is established, and owners realize how they truly operate.
While understanding what features you mostly likely need ahead of time before deciding which business bank account is for you, here are the most commonly appreciated features that account holders use, in reality, every day.
Balance Inquiry Options
Believe it or not, this is probably the most used feature of any business account. It isn’t uncommon to check balance in an account multiple times throughout the day to see what’s cleared, what’s pending and how much money is available to spend. The difference really comes from how inquiries get processed; do banks bury this information behind a password-protected portal or do they display it quite readily with detailed transaction histories? Thus, this may be one of the most utilized features in a business account, and those banks with the easiest access and most clear details (which only enhances critical financial decision-making like whether a purchase should be made or bill should be paid) are the ones that come out better in the long run. Good transaction history displays what got paid for, who it’s from and if it no longer exists on the account, meaning it’s cleared or pending.
Inquire about how to access transactions as this is a huge relief when attempting to recall a charge three weeks ago on an obscure invoice. Therefore, test this in real time upon establishing the account to see what’s truly feasible.
Mobile Deposit Capabilities
Despite the obsession with credit cards/debit cards/cashless payments, checks still change hands and get received for payments. If buyers are getting refunds from your business or vendors returning payments for services not rendered, you’ll want to receive those checks and put them directly back into your business accounts. While going to a physical bank is an option, the best business bank accounts keep businesses cash flowing by needing only to snap a picture and submit.
With good mobile deposits, confirmed quickly with alerts that they’re received with checks less than $500 instantly granted access to funds before banks take days to process their clearance. Many business bank accounts offer good approval times which – believe it or not – are better than most of the competition. This saves business owners from needing to take time out of their work day or from letting checks sit three days on their desks because they “haven’t had time” to go to the bank. Those accounts that allow for quick deposits for immediate credit are also better long-term as cash flow always needs to remain constant.
ACH Transactions/Transfers
Whether it’s transfers from one account to another or payments processed for vendor transactions/bill paying in general, ACH processes are what help continually move money across accounts and institutions. Businesses need ACH features and payment ability seamlessly integrated into their accounts to continue daily operations without missing a beat.
The more streamlined an ACH payment process is by making automatic withdrawals with saving electronic confirmations on one side of payment and receipt on the other means that everything works out as planned. Those businesses operating within hours of an expected ACH confirmation realize that certain banks process them faster than others.
Access To Debit Cards
Most day-to-day purchases come from debit cards. While credit cards offer a plethora of financing options, the day-to-day operation of businesses comes through debit cards used for office supplies, software subscriptions, vendor payments and client lunches. Thus, having access to debit cards for purchases all over town – and access at stores – is integral to reducing time spent at banks or slow shipment times merely for packing slips.
However, what matters most within these options are those controls placed over when debit cards get used. This means reliable transaction histories that acknowledge decipherable purchases without needing to reference obscure credit card merchant numbers. Moreover, if accounts offer the ability to issue multiple debit cards with limits or controls, this becomes important as employees garner unique needs; the office manager needs an office supply debit card with a limit while you need a manufacturing debit card.
Access To Digital Records
Statements need to be reviewed regularly – for accountants obtaining gross/net totals versus paying commercial loans on behalf of tax considerations; thus access when needed trumps having to go back into physical records via mailing systems. Therefore, accessing digital copies of statements makes more sense than anything else.
Those pages and pages of online transactions that can be downloaded into PDFs can also be searched – this is important when searching three months ago for ten transactions and needing to know which was what. Those institutions that have easy access to various months allow owners and accountants alike to do their jobs without wasting time having to either call customer service for sent copies or make errands.
Automated Transactions/Mobile Bill Pay
This isn’t fancy. Any expense paid at the same time each month can be accounted for through mobile bill pay via ACH transactions that send amounts out when needed or transfers that take place without comment. This is easier for rent payments than it is for unexpected expenses; therefore businesses should get used to it when they can.
This helps prevent late transactions or payments and allow the working memory capacity needed elsewhere in the brain feel assured nothing needs thinking about. If a payment is set up once for the same amount within a certain timeframe, it can just run on autopilot while confirmation serves as closing documentation.
Real Time Alerts
Alerts come through notifications either via email or text message depending upon digital security measures against unusual activity/overdrawn balances/larger payments than expected. Having this feature is important so owners don’t have to check messages across accounts all day; they can just be notified without inquiry.
Those alerts have higher importance than smaller payments gone through without question. Banks that make owners aware of high-risk potential helps avoid issues forming; if there’s a charge within two minutes at a gas station 50 miles away that they’ve never been to, that’s unusual; if they’re automatically alerted upon login – without knowing yet – they’ll stop whatever potential fraud was doing before it started.
Integration With Other Financial Software
This isn’t something available right away – accounts that integrate well into existing financial software (Quickbooks, Peachtree, etc.) with scheduled accounting subtotals simplify numerous accounting aspects without spend hours justifying reconciliations. If your financial software picks up deposits made and runs with entries because they’re associated with these accounts already.
Those companies who’ve had this integration taken care of by professionals operate much better; those who have never enjoyed this software learn all-too-late how to manually enter everything – so keeping everything simple works best.
The Most-Missed Features
When check deposits from clients come through constantly at the same time vendors need accounts paid regularly; accounts payable becomes accounts receivable on an ACH system much better than on a cash basis and needs daily advanced notice for success.
The features promoted by banks that aren’t all too glamorous are those most relied upon; however non-sexy offering give companies lines of credit that otherwise wouldn’t exist because they boast transactions they otherwise could spotlight anywhere they want – and all that happens gets streamlined through mobile progress.
If business owners can conduct business while not at the banks operating their accounts – receiving confirmation in hindsight – that’s what makes operating a business successful – not at the bank when they could get real work done elsewhere.
