Checking Account For Entrepreneurs: An Overview, How It Works And How To Open One

As an entrepreneur, properly managing your business finances is like an everyday milestone in ensuring your business keeps its stand.

Entrepreneurs on claim that most times, a huge part of the money that comes into the business as profits, leaves the business as investment in this or that and securing your money amidst all seems like you would be needing a money tracker to keep transactions safe and recorded. This brings up the need to get a secured place medium through which you can keep track of how your money leaves and return to your business daily; a secured medium like checking accounts.

Checking account is a type of bank account that allows you to easily withdraw and deposit money for your day to day transactions. These transactions may include depositing a cheque or cash you received, taking out cash with your debit card, to name but a few. Checking accounts can include commercial or business accounts, joint accounts and student accounts, including many other accounts that run similar functions.

This is How Checking Accounts Work

Entrepreneurs can set up checking accounts through financial institutions websites or bank branches near them. Account holders can use Automated Teller Machine (ATM’s), direct deposit or over the counter deposits, to deposit funds and they can write a check, use ATMs or use debit cards connected to their account whenever there’s a need to access their funds.

Now that electronic banking has made transactions even easier, account holders can now pay bills via electronic transfers and save themselves the need to write multiple paper checks. Also, smartphones can be used for making deposits and transfers, and automatic payments of monthly expenses can be programmed too.

How do You Open Your Checking Account?

For entrepreneurs who are curious as to how to go about opening a checking account, this is how to get started.

●       Type Of Business Account

Most entrepreneurs start by opening a business checking account. You could either choose an online checking account; which is designed for businesses that don’t necessarily deposit cash, or choose checking accounts with four-walled banks that offer a wider range of services which include cash deposits. When it comes to transaction fees, you should understand that online checking accounts charge less than accounts with traditional banks.

●       Choose The Right Bank To Open A Checking Account

The financial institution you choose would go a long way in determining the type of customer service you will receive, the online banking experience you would have, the overall costs and fee as well as other business financial services. So when picking the right bank for you, consider the distance of the bank to you, ensure they offer a good online experience, make sure the cost they charge suits you, and other related factors.

●       Proceed To Open An Account

When opening a business account, you will need to provide some documents which verify the nature of your business. Whether you choose to open an account online or in person, you would need to tender these documents to show or submit on the bank’s website. You would be asked to fill some form, answer some one on one question, and authorize the forms with your signature.

●       Activate Your Account

Once you’re done opening a business account, you can activate your account by  depositing funds in your account. This can be done by transfer, writing check or paying in person.

The Bottom Line

The main purpose of checking accounts is to help keep your money secured for a short period of time, so you can access it anytime you need to pay your bills and run some expenses. For discipline, you can open a savings account which would help you secure your money for a long term. This way you can save some funds for future reference.