Why Every Business Owner Needs a Business Checking Account

Are you starting up a new business? We’re here to help! One of the ways we help businesses manage their finances is by offering different types of business bank accounts. Whether you’re running your business by yourself or have a team of employees, a business checking account can help you to better manage your money on a daily and long-term basis.

What is a business checking account and how does a business account work?

A business checking account is a bank account designed to manage the financial transactions of a business. It allows businesses to deposit funds, write checks and includes features for business needs like wire transfers, higher transaction limits, administer debit cards to employees and more. Businesses can access their account in a branch or through online banking.

What's the difference between a personal checking and business checking account?

You might think a checking account is a checking account, but business and personal checking accounts aren’t quite the same. The most notable difference is that you’ll need a business to open a business checking account. The account will be in the name of your business instead of your name, which is the case with personal checking accounts. Personal checking accounts are usually used for personal, family, or household use. You also need business documentation to open a business account. While personal accounts are usually easier to open and may incur fewer fees, business checking accounts offer important advantages to business owners. See the the benefits of a business checking account below.

Benefits of a business checking account

Business bank accounts are vital to managing your business’ revenue and expenses. With a business checking account, you can keep your money separate from your personal funds. Your account may also give you access to discounts on business loans or merchant services. Benefits of a business checking account include:

• Keeping You Organized: When you keep your personal and business funds in one account, you’re left struggling to differentiate between your personal and business spending. A separate business account eliminates this issue. You’ll be able to easily evaluate business income and expenses without sorting through personal transactions. When it’s time to analyze your business financials, your records will be organized.

• Making Taxes Easier: Organized documents don’t just help when you’re looking through records on your own. They also make it easier for you to prepare your documents when filing your taxes. This makes things easier for your accountant, while also reducing stress if you ever face an audit from the IRS. If your business is audited, you can pull up your business checking records to show all of your business transactions over the year.

• Look Professional: Using a business checking account to pay vendors looks more polished and professional. This increases the legitimacy of your business when working with other professionals. Having checks and a debit card in the name of your business can also help you feel more confident in your business. You’ll feel empowered to keep growing and improving your business.

• Strong Banking Relationships: By opening a business savings account at a local bank, you’ll establish or further strengthen your relationship with a business banker. Your banker can help you navigate the financial needs of your business both now and in the future. When you need additional financing or services, such as a business loan or merchant services, you’ll already have a relationship with your business banker and your bank.

Find the right business checking account

Once you find a bank that offers the features and benefits you want, you’ll need to narrow down the type of business checking account that’s right for your business. Most banks offer a range of checking options to fit a variety of needs. At ASB, we offer three business checking account options. Whatever type of account you choose, you’ll get the friendly help and expertise of our local business banking team. 

All of our business checking accounts include these helpful features:

• Online banking with no monthly service fee.

• No fee for Bill Pay services.

• Receive a debit card for purchases and ATM withdrawals.

• Overdraft solutions linked to your business savings account.

• Access to resources to help you start, grow, and manage your business.

BIZ ESSENTIALS CHECKING 
If you run a small business or are just starting out, you may not need access to the same features as a large business. Our Biz Essentials checking makes it easy for small businesses to manage their money and day-to-day transactions. The best part is there’s no monthly service fee. This makes it easy for you to deposit money and pay bills without worrying if your bank account is costing you money. You’ll get 50 transactions per month, including checks processed or deposited, with a low fee per transaction afterward. Deposit your checks from almost anywhere with Mobile Deposit. You can also deposit up to $10,000 in cash at a branch per month at no extra charge. With plenty of options to deposit funds for little to no fees, it’s easy to manage cash flow for your business.

BIZ PLUS CHECKING 
As businesses grow, they often need more out of their business checking account. That’s why ASB offers Biz Plus checking for growing businesses. You’ll get the same convenience of a Biz Essentials account along with added exclusive discounts on other business banking products. Save on application and annual fees if you need a ProTecLine revolving credit line to protect your business checking from overdrafts. You’ll also get fee discounts on business lines of credit and business loans that can help your business continue to grow. Use funds from a loan of line of credit to increase production, launch a new marketing campaign, or consolidate business debt.

BIZ DELUXE CHECKING 
Does your business have a high volume of transactions per month? Do you maintain a large balance and need a business checking account that meets your financial needs? A Biz Deluxe account gives you the most access to account perks from ASB. Save on outgoing wires with discounts only for Biz Deluxe account holders. Get overdraft protection with no fees for savings overdraft transfers. Businesses that accept credit and debit cards can take advantage of discounts on merchant services. You can also access fee discounts for business loans and lines of credit. When you do apply for a business loan or credit line, enjoy special rate discounts for ongoing interest savings.

How to open a business checking account

There are a lot of options out there when it comes to business checking accounts. Consider choosing local and working with a bank that truly understands your business needs and your community. At ASB, any one of our business bankers can walk you through the process of setting up accounts, applying for financing and managing business funds in Hawaii. They know and understand our local business requirements, and will ensure that your application is submitted smoothly. 

Opening a business checking account is a little different than opening a personal account. We’ll need to collect some extra information to confirm the business and who is authorized to access the account. Start by going over our handy Business Account Opening Checklist to get a better idea of what you’ll need to open your new account. 

Contact a business banker to make an appointment and open a business checking account today.