Selecting the right bank account for your business is as crucial as selecting the right business partner.
Once a bank is selected, you’re most likely to stay with the bank for quite a while. Some of the reasons most businesses felt reluctant to switch banks are:
- Tedious paperwork that involves company secretary and board of director (BOD) approvals and documentations.
- Massive amount of bank forms with endless fields that needs to be filled by company directors.
- Personal relationship with the current account manager from previous banking arrangements.
Above all else, the top reason for business owners to select which bank to go with is security. However, in most cases, banks in most countries are regulated by central banks and therefore banks need to comply to various security compliance standards. These will make it easier for businesses so they need not have to worry about security.
So, before you make that switch or decision, consider these three points:
- User friendly online banking portal – Ask for a demonstration of the bank’s portal and see how easy it is to navigate, make a payment and approving a payment within the portal. You might not have enough time to initiate a payment, therefore the need to rely on your internal administrator, account personnel or you might want to consider outsourcing the task to a third party bookkeeper or accountant. Having an easy to use interface makes these tasks less daunting and essentially less mistakes. Make sure the approval process is easy so you could approve any payment while being mobile.
- Bulk Online Transfer and Statutory Payment – As business owner, you will most likely need to make bulk online transfers to employees and suppliers. Statutory payment for salary purposes is part of a monthly payroll obligation (i.e: Retirement Fund, Social Security and Inland Revenue Board). Ask your potential bank whether they have this feature available within their portal.
- Bank Statement Download – Surprisingly, this is a service where not many bank portals are offering; not just in PDF but also in Excel or CSV format. On that note, the best scenario is when a bank have a direct feed to your accounting system.
You may want to discuss this further with your bank’s account manager for further detail and understanding.
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