If you’re operating a small business, there are a handful of tips and tricks that you might want to know when it comes to banking. Bank fear can often get in the way of small businesses trying to succeed, but banks can be massively helpful. We found two great examples that could help your business. First, some concepts that banks can identify to help you with tax planning. Then, an explanation of how to arrange digital transfers & payments between businesses.
An article at Inc.com called “5 Surprising Ways Your Bank Can Help Your Business” outlines several good points about how to succeed through banking. We’ve talked about some of the same strategies they have, including managing cash flow and building relationships with bankers. But the best advice they offer is about aligning your goals with the different forms of payment you must deal with.
Bankers can help you when it comes to identifying the needs of your business regarding taxes, payroll, payments, and other expenses. Smarter banking can help your business successfully manage these different payment types. For example, good payroll systems can help companies estimate the amount need to withhold for taxes a few quarters in advance, which is especially handy now given the COVID payroll tax credits. Similarly, bankers can identify the likely costs a business will incur in the future to help them save in advance.
Cutting a new check every time you pay a business can lead to extra fees and delays in processing. Bill.com has a good write up titled The One Quality Every Business Banker Must Have, and it can help you identify precisely what you need to find when looking for a banker of your own.
Bill.com’s article goes deep on all of this, but the main topic they discuss is about payments going business to business. It answers the question of “why should you switch” from checks to online payments. But overall, it explains how a good banker and bank relationship can be the biggest help in making a smooth transition. If you’re trying to transition to handling your banking fully online (something that COVID might be causing), managing B2B interaction digitally is a big step to take.
To summarize, here are the two tips to keep in mind when it comes to handling banking and finances for your small business:
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkenIn profile
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