Selecting a bank and a business account that is suitable for your business is similar to hiring a top executive. You have to ensure that the chosen candidate has a combination of the right attributes and skills to help you move the business forward and attain your goals.
Banks and other banking institutions offer many features to their business banking products to attract small and medium businesses. Sometimes these features could be confusing and, in some cases, hard to understand.
If you outsource SME accounting services for your business, an accounting services company in Singapore that is familiar with your industry can provide excellent leads on what to look out for when assessing a bank.
You will get excellent tips on what features will enhance your business and the cost implications of maintaining an account.
Here are a few questions you should ask when evaluating a bank for your business.
1. What is the Array of Business-Banking Products Offered?
Most banks in Singapore provide a wide range of business-oriented financial services to help entrepreneurs manage their finances.
Although a bank may have a wide range of services, you should check if the product range adds value to your business. For instance, would you like an account that allows collections of deposits from various centres? Does your business require frequent funds transfers outwards? And will you be issuing cheques frequently?
Once you have assessed the array of business-banking products and how suited they are to your kind of business, take note to check the cost element. What’s the cost implication of having the bank account?
2. Does the Bank Offer Interest-Earning Business Accounts?
Most banks’ business accounts have a requirement of a minimum balance. In many cases, when you go below this balance, there’s a penalty or additional fees. In other cases, some banks offer fee waivers, bonuses, and interest when you meet and maintain a certain threshold balance.
Check with your accounting services provider on the cost versus benefit analysis of maintaining a minimum balance with the bank. Is it beneficial to keep a fraction of your capital in the bank to avoid extra fees and earn some interest? Alternatively, what would be the cost implication of drawing below the minimum balance?
3. Can You Integrate Your Accounting Software?
You will need the help of your technical support team and your accounting services provider to get an accurate answer for this. Integrating with your accounting software will go a long way in helping you to track your finances, keep an eye on cash flow and reduce accounting errors.
4. Does the Bank Provide Fraud Insurance Along with Its Banking Products?
An emerging trend emerging within the business banking circles is fraud insurance coverage.
Many business leaders want to mitigate the threat of fraud, especially digital fraud, to avoid incurring losses. Since more than one person will likely to have access to the account, fraud insurance can help to mitigate the risk of losses.
In conclusion, these questions will help you to zero in on a suitable banking partner and product for your business. Thereafter, you can compare other fringe features, such as discounts and money-saving offers on partner products as well as loyalty programs.
If you require any assistance on accounting services in Singapore, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a free 30 minutes online consultation for us to understand your business requirements better.
