Rightsizing your Business Bank Account

When was the last time you reviewed your business banking account? Do you know how much you pay in service charges per month?

I recommend all my clients conduct a comprehensive annual review of their plans to ensure they still meet their current needs. In order to ensure you’re not paying excess fees, consider reviewing the following services:

• Monthly transactions (in-branch or at the ATM)
• Access to online banking
• Point-of-sale terminal charges
• Overdraft protection

*Some account plans will also waive the monthly fee if you keep a minimum monthly balance in the account.

As an entrepreneur, reviewing your banking plan can lead you to discover new ways to save time and money with cash management services. Effectively managing your expenses and payments to suppliers and employees can improve your cash flow and, ultimately, your bottom line. Cash management services offered at BMO to help you do so include Online Banking for Business, which gives you easy access to information and can help you determine your cash position, make payments, move funds and identify opportunities for investment or debt repayment.

Another service within Online Banking for Business is an EFT or electronic funds transfer, which allows you to pay employees, utility companies or suppliers. This service allows you to quickly and easily send payments by crediting Canadian and U.S.-dollar accounts at any financial institution in Canada – all electronically. Finally, a popular service in Online Banking for Business is the ability to pay your corporate, utility, and federal or provincial tax bills online, which gives you great control over your cash flow.

Additionally, most financial institutions offer incentives to open business accounts such as overdraft protection and/or business credit card offers. Take a look at this previous blog post, which outlines how consolidating financial services can also save you time and money as a business owner.

Next time you speak to your business banker, ask him or her to do a review of your plan to ensure it still meets your needs, your cost savings are maximized, and so you can learn about what cash management and online banking services are available to you. In the meantime, you can also take advantage of online calculators such as the ‘Everyday Banking for Business Calculator’ offered by BMO, which help evaluate your business banking needs.

Mauricio Vizconde is a BMO Branch Manager in Saskatoon.