The world of small business ownership can range from fun and exciting to downright overwhelming. Banking is a huge part of running a successful business and Libro is here to help. It’s important to make sure that you pick a financial institution that fits the banking needs of your small business today and that it can accommodate your business as it grows. We reached out to members of our Commercial & Agriculture and Small Business teams for their top business banking tips!
Relationships with Your Financial Coach Are Key
Developing a good relationship with your Libro Coach is the first step in making sure you keep your business on track financially. Account Manager Andrew Brown says, “When was the last time you had a meeting with your business banker to just talk? Consider your bank just like a business partner: keep them informed and ask them questions like, “What value or services can you offer me to help grow and sustain my business or create more wealth?”
Understand Your Business Needs
Next, you need to understand your needs and what types of services and small business bank accounts are available to you. “Consider the type of online access and operation you want for your banking, says Diana Antle, commercial and agricultural assistant. “There may be features within our online banking that you previously weren’t aware of. In addition, Libro has relationships with several third party providers to make payroll, merchant terminal and point of sale access easy and affordable.”
She also recommends, “Open a separate account to hold any funds which will have to be remitted to the government (HST, Corp tax, Payroll deductions, etc). This will help keep those allocated funds apart from main operating funds so when the government requests their cut, the funds are readily available.”
Use Your Small Business Bank Account Wisely
Don’t let your cash flow be a drain on your profit. Financial Service Representative Hillary Desmond says, “Be clear about the fees associated with your accounts and any other services you require. This will help avoid surprises at month-end and will allow you to budget accordingly. This will also help ensure that you have the services that are JUST RIGHT for YOUR business.”
When it comes to the day to day management of your accounts, Financial Services Representative Jennifer Pacheco-La has some great tips. “If you are paid by cash or cheque, be sure to use a deposit book or deposit form if using accounting software to group payments into larger deposits. This saves on account fees and trips to the bank.” She also suggests keeping personal and business banking separate. “If a time comes that you need to transfer money between personal and business accounts, make sure the reason is clearly marked in the transfer to and from each account or via a cheque - in the memo section.”
Contingency Planning for Your Small Business
“Given the recent occurrence of COVID-19, I think it’s more important than ever for business owners to develop a contingency plan,” says Account Manager Thomas Sumpter. “This can be in the form of starting a savings account as an emergency fund or finding a way to pivot your business so that instead of one revenue stream, you have multiple. Plan for the worst-case scenario!”
Whether you are a micro, small. or medium business, new or established, one of our Small Business coaches can help. We’re here to walk you through every step, from learning what you need to open a small business bank account to choosing the best business banking option that suits your needs. Let’s grow your small business together.
Check out more business banking information here.