5 Things never to ignore with your business bank account
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Business banking is not everyone’s idea of fun but as the business owner you have
no choice but to be hot on the transactions in your accounts. Here we take a look at
five things not to ignore with your business bank account.
Unless you are in your first year, it is highly unlikely that you will have a business
account without fees. The fees are payable on practically every transaction but the
amount is dependant on the type of account you have, with whom and according to
your terms and conditions. Read up about the fees you should be paying and ensure
you spend time on a regular basis checking those fees are correct and you have not
been over charged. Regular book keeping will also ensure there is always funds to
If your business can claim and charge VAT on goods then you must ensure the right
amounts are going into the account to ultimately pay the VAT bill. Staff should be
aware what products are liable for VAT so transactions at point of sale are correct.
Granted, some businesses will have software at POS to negate the details but if it is a
manual till then this is something everyone should be aware of.
Cards attached to the account can have automatic payments taken from your bank
accounts. Make sure costs are logged and you know what is coming out and when.
Check statements to confirm the correct amounts have been taken out and also
make sure there are always funds to cover any upcoming business needs. You should
also use the time to ensure employees are not abusing the accounts with only
legitimate business expenses being covered by the business and anything else needs
to be billed back to the employee.
Discounts and Savings
Some accounts will give you discounts on services, which could include insurance – a
costly area for some businesses. Read through all the paper work the bank issues
you and ask the question ‘What can you offer me?’ Savings on products is a big draw
for some business owners but you need to maximise your savings, so read up and
make sure you are getting benefits that will provide you some value from the start.
Whether you need it or not, there may still be an overdraft on the account. If you are
going to use it, be aware of the fees and take those into account if you plan to use
the overdraft. This option can be cheaper than a business loan if you need funds for
a business expense and if funds will be replaced quickly. Try not to use it on a regular
basis because you will become reliant on it and debt is not the key to a successful
In conclusion, make sure you know really take note of the details of your business
account. Regular book keeping and using a reputable accountant will ensure you’re
never caught short and ultimately charged a large bank fee for the mistake.