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The Bank Onboarding Process for Start-ups
The Bank Onboarding Process for Start-ups
Choose the Best Bank for your Corporate Account
When you are on the brink of opening a business account for your new business make sure you have considered your banking options thoroughly. A bank that has served you well for personal finance may not necessarily be the best for your business account. Some banks are more adept at handling corporate banking; their staff are more informed about the banking needs of start-ups and they have more experience with corporate banking. Review what services you will get with each bank. For example, will you be able to open a line of credit or need cash management, which bank can best meet your needs. Compare banks to see which is more experienced in working with businesses from your industry and which bank will charge the lowest rates. In some cases, it is possible to open your account online but some companies in certain high risk industries will need to make a visit to the brick-and-mortar bank branch.
Choose a Corporate Account that Best Suits Your Start-up
It is common for businesses to hold more than one corporate bank account – with each account being allocated a certain function, for example payroll, income and taxes. This can be extremely helpful and help you keep your business finances organized but it is not necessarily the right choice for your business. You need to decide if your business activities warrant separate accounts for each financial function. You can review the business account options available to you by consulting with a professional finance advisor or accountant. It is best to your homework into your banking options before making that first trip to the bank.
Prepare for Onboarding
So you’ve chosen your bank and the right business bank account for your company. The next stage is to start gathering the documents you will need for the onboarding process. Check with the bank what documents they require. There are no standard required documents, each bank has its own policies regarding the documents necessary for onboarding. You may only need your social security number if your businesses is a one-man operation. Larger companies will need extensive paperwork.
Open for Business
With an established corporate bank account, you can now set up a credit card merchant account and start receiving payments and paying suppliers. Consider using an online payment system like PayPal if you anticipate a high volume of online transactions. With an online payment system, you can accept payments through an email address. If you will be mainly accepting payments in-store than a point-of-sale app like Square Register will facilitate credit card payments and give you money management tools to monitor sales trends and see sales reports.
Track your Company’s Finances
Always have a record of your company’s finances including incoming and outgoing funds. With an organized and thorough record of your business financial activity you and your accountant will find submitting your taxes a lot easier. With well-organized paperwork you can avoid being audited by tax authorities.
Monitor your company’s:
- Taxes
- Income
- Outgoing expenses, including utilities, suppliers and miscellaneous expenses
- Payroll
- Charitable donations made by the company
One of the fundamental steps when opening a new start-up is to create a business bank account. This serves the practical function of making it possible for your business to receive payments and pay suppliers. In addition, having a business bank account lends a certain legitimacy to a new endeavor; gives you an official way of recording your income and expenses and plan your company’s budget.
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