Running a business means considering absolutely every aspect of what you’re doing, and when it comes to finances, that means being aware of every cent – even something as seemingly insignificant as bank fees.
The truth is, it all adds up, and for large corporations, this may not make much of a dent in finances. But for startups with more limited access to capital, there’s great potential for unexpected costs like business bank account fees to affect your bottom line.
Of course, there’s not much you can do about this – you can’t exactly opt out of paying bank fees. And, while it may be tempting for small, less established startups to simply stick to using the founder’s personal bank account, it’s not a long-term solution.
Rather, all you really need to do is to properly take stock of the bank account fees you owe and make sure you plan accordingly. As long as budget for these small fees, there shouldn’t be anything to worry about.
Business bank accounts to consider include:
Understanding Business Banking Fees
First things first, you need to actually understand what business banking fees retail and how they work. Now, to make it a little more complicated, these fees aren’t exactly the same across the board – it may depend on the bank or type of account you have.
But, business banking fees may include things like account maintenance fees, transaction charges or costs for depositing cash and cheques. Also, some banks charge extra for features like accelerated payment service, invoicing tools and multi-currency accounts.
From the outset, these costs may seem like a necessary cost of doing business, but for small startups with tight margins, this can really begin eating into your profits. For instance, if you’re charged for every single deposit or withdrawal, companies that have high transaction volumes could end up facing some really substantial costs in the long term.
Of course, different banks have their own pricing options and structures, and different banks are better geared towards specific types of companies. So, make sure you do your research in advance.
| Company | Monthly Fee | Other Requirements | Claim offer |
|---|---|---|---|
 | Trusted by more than 50,000 companies 3 Month Free Trial | 3 Month Free Trial and managed through an easy to use mobile app. | Get this deal |
 | 1 Month Free then £14.90 + VAT per month (or £149 per year) | 10 minute sign up, accounting functions and easy to use invoicing tools to get invoices paid faster | Get this deal |
Are the Fees Worth It?
It may seem like you’re paying a lot for your business bank account and the associated features and services, begging the question, is it all worth it?
Well, the value of a business bank account lies in the services it provides, and while paying these fees may seem like a burden, having a dedicated business account can really simplify your bookkeeping processes, helping you build financial credibility and manage cashflow. Thus, many people feel that the convenience provided by business bank accounts far outweighs the relative cost.
How to Minimise the Effect of These Fees on Your Bottom Line
Of course, the ultimate question we’re hoping to answer is, how do we minimise the effect of these fees on your startup’s bottom line?
Well, one of the best ways to ensure business bank account fees don’t completely erode your profits is to simply shop around. You can’t get away from paying the fees, but if you have a look at what else is out there, you can at least ensure that you’re getting the best possible deal. So, keep an eye out for accounts with low or no monthly fees and favourable rates for the services that you use most often.
A good thing to consider is using fintech platforms or online-only banks – they tend to provide business accounts with reduced fees. These newcomers to the banking world tend or have lower overheads than traditional, physical banks, so they can help customers save a bit too.
The Best Way to Save on Bank Fees
Business account fees are just one component of managing your startup’s finances, and your banking needs may evolve as your business grows. A good account can streamline operations, enhance financial management and offer networking opportunities.
The key, however, is ensuring that the fees you pay actually provide proper value. By making informed choices and managing your account effectively, you can control costs and focus on business growth.
