5 Reasons Online Banking is a Must-Have for Small Businesses

Does your company still rely on checks, credit cards, and brick-and-mortar banks to handle their financial needs? Many companies reluctantly cling to the past, whether by refusing to learn new things, or avoiding the “complexities” of online banking.  Unfortunately, many small businesses suffer from failing to adopt online banking. Consider the pizza restaurant without online banking that is disadvantaged by constant trips to the bank, and misplaced statements and receipts.  Sooner or later, they lose track of transactions, of how many pizzas are sold, and mamma mia! Their pizza business suffers from lost money flow, time and mismanagement.  Therefore, it’s time to move your business to the web and set up online banking.

The Advantages of Online Banking for Your Small Business

Online banking can give any company or small business owner a number of benefits, and it is incredibly easy to set up. The following are some of the many advantages that online banking offers to businesses:

  1. Convenience:

Online banking is very convenient because individuals are saved the time of processing checks and going to the bank by relying on online banking. They can bank from virtually anywhere, regardless of time or place. In addition, people no longer have to use their old business phone systems and wait on lengthy phone calls to speak to a customer representative; they can gain access to one instantly through online banking. Some of the various functions that individuals can perform from their home computer include: paying bills, transferring money between accounts, and managing transactions.

      2. Save Money:

Many banks also offer free online banking, removing the conventional costs of opening or managing an account. In addition, some banks offer higher interest rates with online banking accounts as opposed to traditional accounts. By researching which banks offer the best deals, users can save their hard-earned money.

       3.   Free Services:

On a similar note, many services of online banking are freely offered by banks to their customers. By engaging in online banking, customers can open free online checking accounts, use a free debit card, and transfer funds from one account to another without charge.

       4.   Real-Time Transactions and Records:

As you make purchases, pay your bills, or transfer funds, these activities immediately register into your online banking account. This allows users to accurately track and monitor their spending. In addition, many banks keep records of past statements dating back to several months. In comparison to paper statements that can be misplaced and lost easily, electronic records are easily stored and accessed.

        5.   Be Green and Be Organized:

One of the major advantages of online banking is that they offer paperless statements, or the option of sending statements through email. This allows the individual to minimize the chances of lost mail as well as have a positive effect on the environment.

Tips for Setting up Online Banking

When setting up online banking for the first time, companies should keep in mind the following tips. First of all, businesses should look for a bank that offers services and bank accounts that best match their needs. Companies may consider various interest rates and the online platform before making a decision on a bank.  In addition, business owners should research the security protocols that the bank has in place by doing their own background check. The security of online banking is very important; if the online banking account is compromised, then the individuals’ business may be put into risk. Therefore, keeping track of security and protection measures can safeguard against mishaps in the future.

For companies that are switching to online banking, one of the major challenges is maintaining a paperless bookkeeping system. Many clients or contacts may still rely on paper checks, contracts, or documents. Therefore, companies should scan these documents and keep track of invoices online. Another tip is to maintain records of transactions by scanning receipts, invoices and other data and uploading them online. Although it may be nerve-racking at first, rest assured that many companies currently use the policy of online banking, and so far no mamma mias have occurred.

Photo Credit: online-banking-uk.com

Amanda DiSilvestro is a writer on topics ranging from social media to employee background checks. She writes for an online resource that gives advice on topics including business phone systems to small businesses and entrepreneurs for the leading B2B Directory, Business.com

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