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.
1. 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.
Open a business banking account that offers flexible transaction limits and low, tax-deductible fees charged only when you use the services.
2. 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. The Canadian Bankers’ Association reports that 83 percent of consumers feel online banking adds value for them.
3. Pay Your Bills Electronically
StatsCanada shows 68.3 percent of Canadians 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.
4. Accept Electronic Payments
Offer 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.
5. Use a Business Credit Card to Track Expenses
With a business credit card you can track company expenses and earn points or get cash back 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.
By reconciling your budget with your bank account weekly and checking your balance daily to avoid withdrawing more than you should, you can spend more time running your business and less time and money on banking.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.