You May Not Need a Business Checking Account?

I know this sounds a bit insane; but with the onset of banks charging fees for business checking accounts and the ease of PayPal, a business checking may eventually become a thing of the past.

Getting away with not having a business checking account may come more easily for you when you’re a small start-up; yet as your business grows, you might not be able to avoid opening a business bank account.

Research Your Options

If you decide a tradition business checking account is for you, shop around before opening a new account because making a change to your bank later on can be a major hassle, primarily in cases where on-going direct deposits and wire transfers are involved. Selecting the right place to house your hard-earned business dollars should take some forethought. With recent mergers and takeovers, countless banks are vying for your business, so research a few before deciding what’s right for you.

Bank Fees Can Get Costly

For me, an institution that has balance restrictions and requires a monthly fee, for example, would be a deal-breaker for me.

A way around the fee, depending on the bank and its policies, may be opening an account under your name while noting it a DBA or “doing business as” account. This tactic can save a new business up to $100 yearly in unnecessary fees by simply classifying the account as a personal account but with a DBA status.

Certain stipulations do apply, however.

A bank official may ask a number of questions to determine the feasibility of type of setup.

For example, questions might include…

How many checks do you plan to write from the account?

How much in forecasted revenue do you expect over the next 12-month period?

Will you be accepting checks written to your business name?

I answered these questions when setting up my checking account more than 15 years ago. I had only 2 problems with a DBA checking account.

First, my bank flagged checks written with my company as the payee, not me personally. Second, a bank hounded me every so many years stating that must eventual transition to a business checking account. I always resisted of course. Few payers use my company name, so when I factor fee savings from the last decade and a half, the benefits have far outweighed the added hassle.

Save on Checks Too

To save additional money, shop around for the best rates on buying checks. Although the need for checks is diminishing as people embrace the benefits of online banking and paperless transactions, it’s likely you’ll still need a small batch of checks to handle select payments to vendors, suppliers, or contract personnel.

There are numerous paper factories that mass produce checks and therefore offer impressive discount pricing. Some of the best offers I’ve seen come from the following check suppliers:

Checks Unlimited, 800-210-0468
www.checksunlimited.com

Artistic Checks, 800-243-2577
www.artisticchecks.com

Designer Checks, 800-859-7086
www.designerchecks.com

One of my favorite printers VistaPrint.com also offers personalized financial products to include the three-to-a-page business checks we generally associate to businesses.

VistaPrint 866-614-8002
www.vistaprint.com

While conducting an aggressive marketing campaign for your new business, don’t forget to include your business URL on your business cards, invoices, stationery, and yes, even your checks!

Check printers accommodate up to five lines of data, so utilize all the space available to promote your business. Here’s an example of what I did years ago to help my marketing efforts: