A National Federation of Independent Business (NFIB) survey determined that almost 97% of small business owners utilize business bank accounts. Once established, business owners use these accounts to separate business and personal finances while accessing features to improve the customer experience and streamline financial and resource management.
We will discuss the key advantages of operating a business checking account in Maryland and explain the available features and options.
Treasury Management Services
Business owners optimize payment processes and mitigate financial risk by utilizing the treasury management services included with their checking accounts.
Treasury management services provide a wealth of tools, such as access to ACH services for direct deposit payroll and bill payment. With ACH services, businesses pay employees and vendors electronically instead of with paper checks.
Paper check fraud is rising, and ACH services provide a safe and efficient way to mitigate risk when making payments. Account holders can also electronically deposit checks safely and securely, eliminating the need to travel to the financial institution to make deposits.
Sixty-two percent of small business owners work at least 50 hours a week, according to Gallup. With so much time spent in the office, electronic deposits are an attractive feature for many business owners.
Treasury management services simplify accounting tasks by allowing account holders to download transactions directly to their existing financial software.
Doing so reduces many of the manual processes required of accountants and bookkeepers. As a result, accountants and bookkeepers avoid costly errors when making manual entries.
Accept Credit Card Payments
Establishing a business bank account is necessary for those who wish to accept credit card payments from customers. Business checking account holders can add merchant services, including credit card machines, virtual terminals and gateways, and mobile payment methods. Once enabled, credit card payments can be accepted in-person and online.
According to estimates,businesses that do not accept credit cards lose an average of $7,000 annually in sales. Consequently, opening a business checking account in Maryland is essential to a company’s financial stability and success.
Build a Credit Rating with a Business Checking Account in Maryland
According to the SBA, business owners must choose a business structure, obtain a tax identification number, and open a business bank account to establish business credit.
A business checking account separates personal and business finances and gives lenders the information needed when employers apply for financing.
After opening a business checking account, owners can apply for SBA loans and other business funding directly through their financial institution of choice.
Maintain a Professional Image
Maintaining a professional image is essential for small, medium, and large businesses. Entrepreneurs who use personal checks and debit cards resemble hobbyists instead of committed business owners.
Hence, many need help with trying to establish relationships with customers. Customers are more apt to trust companies with business banking accounts and understand they are transacting with a legitimate business.
Furthermore, most business checking accounts include overdraft protection, ensuring payments are honored. This further establishes trust between business owners, consumers, and vendors.
Considerations when Establishing a Business Checking Account in Maryland
Banks typically offer multiple business checking account products with unique features. Most accounts include core features, such as check writing, online banking, overdraft protection, and debit cards for the account holder and additional authorized users.
Along with the core features, business owners should consider unique offerings included with different checking account products. Transaction limits are one of the first features business owners should consider.
While some accounts offer unlimited transactions, that is not necessary for all businesses. Sole proprietors and other small business owners can avoid account maintenance fees by choosing an account with transaction limits.
Those who go over the established limits must pay fees for subsequent transactions. If business owners repeatedly exceed transaction limits, they can transition to a checking account without limits.
Business owners also must decide if they want an interest-bearing checking account. Sole proprietors with limited transactions can earn competitive interest rates with some checking account products.
At the same time, large companies can accumulate competitive earnings credits to offset fees without adhering to transaction limits. Additional services are also available after establishing the business checking account in Maryland.
Account holders can apply for business credit cards, set up merchant services, access loan products, and more. These additional services allow business owners to scale up without transferring to new checking accounts.
Establish a Business Checking Account Today
Woodsboro Bank offers three types of business checking accounts for small, medium, and large companies operating in Maryland. You can open checking accounts that earn interest, provide unlimited transactions, offer Intuit Quicken Money integration, and more.
Contact Woodsboro Bank today to determine the appropriate checking account for your business. We can also discuss additional services you can add to enhance your company's financial management.