If you are a business owner, then one of the first things that you need to do is to set up a bank account exclusively for your business’s use. For tax purposes, you cannot use your personal account as your business’s main account. When it comes to drawing up your tax return at the end of the year, it would be far too much work to filter out your personal spending.
Many business owners are choosing to use digital banks for their businesses. This article will tell you why:
Finding the Perfect Bank
Before moving on to this article’s main topic, let’s discuss finding the perfect bank. Opening an online business bank account doesn’t cost any money and you can close your account at any time, so there’s really no reason not to try one out. So that you can enjoy all of the benefits that online banks offer, you need to find the one that’s perfect for you. The best way to find an online bank is to browse reviews of the best online banks and their business accounts, as well as to network with people that use online banking services. Once you have found a bank that interests you, make sure to get in touch with them and ask what their business services are like.
Easy to Use:
One of the main advantages of online banking is that accounts are easy to open and operate. Unlike other banks where you need to go into a branch with a folder full of paperwork to open an account, online banks will let you open an account online. While you will still have to prove your identity to online banks before they allow you to open an account, the process is much more straightforward. All you need to do is to email them a scan of your passport and a document showing your name and address.
Not only are online banking services easy to use, but they are also very convenient. Instead of having to go into your bank’s local branch every time you want to discuss something related to your account, you can just open your bank’s app and talk to a customer service representative instantly. Online banks offer video chat, live chat, and phone services. Video chat services are usually accessible 24/7 and have very short wait times.
Following on from our last points, online banks are available 24/7. This unfortunately isn’t the case for high street banks, many of whom close at 5 pm and aren’t open on Sundays or public holidays. In addition to the bank’s availability schedule, you can also access your bank account from anywhere, at any time. The only thing that you need to access your account is an internet connection.
Online banking is much faster and more efficient than traditional banking. You can make instant transfers using your banking application. You don’t need to phone your bank to make them, nor do you need to wait several days for them to process. Online banking is much faster and much more efficient.
With an online bank account, you will be able to monitor your banking transactions and activity at all times, no matter where you are. This gives you the opportunity to detect fraud before it becomes serious. If you notice any strange transactions, you will be able to lock your account using your bank’s freeze settings. With traditional accounts, and in the past, people usually didn’t learn about bank fraud until it was too late. Now you can stop it in its tracks before it becomes serious.
If you aren’t technologically savvy, then learning to use an online banking platform might be particularly difficult for you. While for most people it isn’t a problem, for some it is. Learning how to use online banking services can be a deterrent for many people. Fortunately, online banks provide handy guides and tutorials, designed to help people struggling to familiarise themselves with their services.
If you don’t have an internet connection, you can’t access your bank’s application. If you have two accounts and don’t hold money in your current account, then this could be a problem. With that said, you should still be able to access your bank’s services by phoning them directly.
Finally, any financial activity that takes place online is always at risk of being targeted by fraud gangs. The best way to avoid fraud gangs monitoring your financial activity and stealing from you is to use a VPN whenever you use your bank’s application. Business bank accounts are regularly targeted by scammers and frauds because they tend to hold a lot of money. It’s especially important that you find an online bank that takes its security seriously, for your business’s sake.
Finding a bank account for your business can be very difficult, especially if you haven’t had to before. As the account that you are opening is for your business, you need to be confident that it’s perfect. Make sure that once you have found a quality bank, you speak to their representatives and discuss opening a business account at length with them.