20 Best Small Business Checking Account Features


small business checking account

Choosing the right small business checking account is crucial for seamless financial management and distinct separation from personal finances. It not only simplifies purchases, transfers, and deposits but also facilitates efficient bookkeeping and offers access to diverse financial services.

This guide highlights key aspects to consider in a small business checking account, ensuring it aligns with your business needs and enhances financial operations.

Our Methodology: How We Evaluated Features in Small Business Checking Accounts

Selecting the right checking account is a vital decision for small businesses, impacting their daily financial operations and long-term financial health.

Our methodology for evaluating features in small business checking accounts uses a scale from 1 to 10, where each score reflects the importance of a specific feature based on its utility, cost-effectiveness, and relevance to small business needs.

Higher scores, closer to 10, indicate features that are particularly critical for small businesses, such as low fees, ease of access, and comprehensive financial management tools.

small business checking account

Low Fees and Charges (10/10)

Minimal or no monthly fees, transaction fees, and other charges are given the highest priority, as they directly affect the cost of maintaining the account.

Ease of Access and Convenience (9/10)

Easy access to banking services, including online banking, mobile apps, and physical branches or ATMs, is highly valued for day-to-day financial transactions.

Online Banking Features (9/10)

Robust online banking capabilities that allow for efficient management of finances, including transfers, bill payments, and account monitoring.

Overdraft Protection (8/10)

Overdraft protection options are important for preventing potential fees and managing cash flow effectively.

Transaction Limits (8/10)

Higher transaction limits or unlimited transactions are beneficial for businesses with frequent banking activities.

Integration with Accounting Software (7/10)

The ability to integrate with common accounting software simplifies financial tracking and management.

Fraud Protection and Security (7/10)

Strong security measures to protect the account and business finances from fraudulent activities.

Interest-Earning Potential (6/10)

Accounts that offer interest on balances can provide an additional financial benefit to the business.

Customer Support and Service (6/10)

Responsive and knowledgeable customer service is crucial for resolving banking issues and inquiries efficiently.

Additional Business Services (5/10)

Availability of additional services like merchant services, credit lines, or business credit cards adds value to the checking account.

Rewards and Incentives (5/10)

Rewards or incentive programs, while not essential, can offer additional benefits to businesses for their banking activities.

small business checking account

Our methodology is designed to guide small businesses in choosing checking accounts that are not only cost-effective but also offer a range of features that streamline and enhance their financial operations.

By focusing on aspects such as low fees, ease of access, and integration with business tools, we aim to identify accounts that provide the most value and convenience for small business owners.

Look for These Small Business Checking Account Features

When opening a small business checking account, consider these critical features to ensure efficient financial management and growth:

  • No Monthly Fees: Look for accounts with minimal or no monthly fees.
  • Online Banking Options: Ensure user-friendly online banking is available.
  • Mobile App Availability: Check if the bank provides a convenient mobile app.
  • Card Options: Consider the availability of credit and debit card options.
  • Bookkeeping Integrations: Seek accounts compatible with your accounting software.
  • Payroll Features: Prioritize accounts with payroll program integrations.
  • Free Transfers: Opt for banks offering free account transfers.
  • Convenient Locations: Choose banks with locations accessible to your business.
  • Flexible Hours: Ensure the bank’s operating hours align with your schedule.
  • Access to Credit: Consider banks that offer small business loans at competitive rates.
  • High Cash Deposit Limits: Ideal for cash-intensive businesses.
  • No Transaction Limits: Necessary for businesses with frequent transactions.
  • Express Deposit Options: Look for efficient deposit methods like mobile check deposits.
  • Online Reporting: Essential for easy access to financial reports.
  • Paperless Options: Reduces the need for physical document storage.
  • Account Alerts: Security feature for monitoring unusual account activities.
  • Liability Protection: Protects against unauthorized account usage.
  • Interest Payments: Beneficial for accounts with high balances.
  • Savings and Investment Options: Useful for future business growth.
  • Rewards Programs: Can offer additional benefits like cashback or airline miles.

small business checking account

No Monthly Fees

When considering a small business checking account, a critical factor is the presence of monthly fees. Small businesses, particularly in their early stages, often operate with tight budgets, making additional expenses undesirable. Monthly fees can quickly accumulate, straining the business’s financial health.

Therefore, it’s essential to thoroughly understand all potential fees associated with an account before making a decision. Opt for accounts with no or very low monthly fees to avoid placing unnecessary financial burden on your business.

This approach not only helps in maintaining a healthier cash flow but also ensures that resources are allocated effectively towards business growth and operational expenses, rather than being consumed by bank fees.

Online Banking Options

In the digital era, the ability to manage finances online is a non-negotiable feature for most businesses. When selecting a small business checking account, assess the online banking capabilities of the financial institution.

Ensure that the online platform is intuitive and user-friendly, offering easy access to key features such as account monitoring, fund transfers, and payment services. The online banking service should provide a comprehensive and secure way to manage your business finances, adaptable to the dynamic needs of your business.

It’s important to choose a platform that not only meets your current requirements but is also scalable to accommodate future business growth and complexities.

Mobile Apps

The convenience offered by mobile banking apps is invaluable for small business owners who are often on the move. A bank that provides a robust mobile app enables you to check balances, make transactions, and monitor account activity conveniently from your smartphone.

This feature is particularly useful for businesses requiring frequent financial oversight and quick decision-making. Ensure that the mobile app is secure, efficient, and includes functionalities tailored to small business needs, such as mobile check deposits and real-time alerts.

An effective mobile banking app can significantly enhance the efficiency of managing business finances, providing flexibility and immediate access to financial information.

Card Options

Flexible spending options are crucial for small businesses. A checking account that offers both credit and debit card options can significantly streamline business transactions. These card options provide ease in managing business expenses, whether they are online purchases or in-store transactions.

Look for cards that offer rewards or cash back on business-related expenses and have robust fraud protection measures. Additionally, consider the limits and fees associated with these cards to ensure they align with your business spending patterns and financial strategy.

small business checking account

Bookkeeping Integrations

Efficient bookkeeping is vital for any business. A checking account with integration capabilities for accounting software, like QuickBooks, can greatly simplify financial tracking and reporting. This feature allows for seamless synchronization of transaction data with your accounting software, reducing manual data entry errors and saving time.

Ensure that the bank’s integration is compatible with your preferred bookkeeping software and offers real-time data synchronization for accurate and up-to-date financial reporting. This integration not only aids in better financial management but also streamlines tax preparation and financial analysis processes.

Payroll Features

For small businesses with employees, payroll management is a significant task. A checking account that integrates with payroll services can greatly simplify this process. Look for features that allow easy setup of direct deposits, tax withholdings, and employee payment management.

This integration can save time, reduce errors, and ensure compliance with employment and tax laws. It’s important to assess the ease of use and reliability of the payroll features offered by the bank, as well as any associated costs, to ensure they align with your business’s payroll needs and budget.

Free Transfers

For businesses that frequently move funds between various accounts, including partner or personal accounts, free transfer options are a key feature to consider in a small business checking account. Banks that don’t charge for transfers provide significant flexibility and cost savings, allowing you to manage your finances without incurring additional fees.

This feature is especially beneficial for businesses that require agile financial management, as it enables quick adjustments to cash flow without financial penalty. When choosing a bank, ensure they offer unrestricted, fee-free money transfers to support the dynamic nature of your business operations.

This flexibility is crucial for maintaining a healthy cash flow and for effective financial management, particularly for businesses that operate with multiple accounts or have complex financial structures.

Convenient Locations

For businesses that prefer or need to conduct banking in person, such as making deposits or withdrawals, the physical location of the bank is an important consideration. Selecting a bank that is conveniently located near your business or along a route you frequently travel can save time and increase efficiency.

In fact, more than a quarter of small businesses opt to use the same bank for both their business and personal accounts for convenience. A bank with multiple branches or a widespread network can offer greater accessibility and flexibility, particularly for tasks that require in-person attendance, such as depositing cash or handling complex transactions.

small business checking account

Hours That Work for You

The operating hours of a bank can greatly impact your ability to conduct business efficiently. Especially for small businesses that need to make deposits or withdrawals outside of standard business hours, it’s crucial to choose a bank with hours that align with your schedule.

For those requiring late-night services, some banks offer after-hours drop boxes, providing a secure way to deposit funds at a time that suits you. This flexibility can be particularly beneficial for businesses that operate during non-traditional hours or have time-sensitive banking needs.

Access to Credit Options

As your business grows, you may find a need for additional funding through loans or lines of credit. Working with a bank that you already have a relationship with can sometimes make accessing these credit options easier.

Therefore, when choosing a bank for your checking account, consider whether they also offer small business loans or credit lines at competitive rates. Having a pre-existing relationship with a financial institution can streamline the loan application process and potentially offer more favorable terms or faster approval times.

High Cash Deposit Limits

Businesses that handle large volumes of cash, such as restaurants or retail stores, should pay attention to policies regarding cash deposits. It’s important to be aware of any fees or limits on cash deposits, as these can add significant costs to your operations.

Choose a bank that offers high cash deposit limits and low fees to avoid unnecessary expenses. This consideration is particularly crucial for businesses where cash transactions constitute a significant portion of daily operations.

small business checking account

No Transaction Limits

Some checking accounts impose limits on the number of transactions you can make, which can be a hindrance for businesses with high transaction volumes. Ensure that the account you choose either has no transaction limits or a limit that comfortably accommodates your business’s transactional needs.

This is especially important for businesses that process a large number of small transactions, as hitting a transaction limit can disrupt operations and potentially incur additional fees.

Express Deposits

Efficient payment processing is vital for small businesses. Look for banking options that offer express deposit features, such as mobile check deposits, which allow you to quickly and conveniently add funds to your account. This feature can significantly reduce the time spent on banking tasks and improve cash flow management by enabling faster access to funds.

Online Reporting

Access to comprehensive online financial reporting is essential for efficient bookkeeping and tax preparation. Choose a bank that provides detailed online reports, allowing you to easily track transactions and manage your finances.

This feature can save significant time and resources in financial management and ensures you have the necessary information for accurate financial reporting and analysis.

Paperless Options

In an effort to reduce clutter and streamline operations, consider banks that offer paperless banking options. Managing your account online reduces the need for physical documents, making it easier to organize and access your financial information.

This eco-friendly option not only simplifies account management but also aligns with modern business practices focused on sustainability and efficiency.

Account Alerts

Account alerts are a valuable feature for monitoring and securing your business finances. Look for accounts that provide alerts for notable activities, such as large transactions or unusual patterns.

This proactive approach can enhance the security of your account and provide peace of mind, knowing you’ll be promptly informed of any significant account movements.

Liability Protection

Liability protection is crucial in safeguarding your business against unauthorized account usage. This feature ensures that you are not held financially responsible for unauthorized transactions, providing an additional layer of security for your business finances.

When selecting a bank, confirm the extent of their liability protection to understand how you are covered in such scenarios.

Interest Payments

For businesses that maintain high balances in their checking accounts, earning interest can be a beneficial feature. While the interest earned might be modest, it can contribute to the growth of your funds over time. When evaluating banking options, consider accounts that offer interest on balances, as this can be an added advantage for your business finances.

Savings and Investment Options

As your business expands, you may want to explore savings and investment opportunities for future projects or growth initiatives.

Choosing a bank that provides a range of savings and investment options can simplify the process of setting aside funds or investing. This feature can be a valuable asset in planning for your business’s long-term financial goals and growth.

Rewards

Many small business checking accounts offer rewards programs, which can range from cash back to airline miles, depending on the nature of your business. These rewards can provide additional value to your banking experience, offering benefits that align with your business needs and spending patterns.

When selecting an account, consider the type of rewards offered and how they can complement your business operations and expenses.

small business checking account

Checklist: Key Features for a Small Business Checking Account

No Monthly FeesAccounts with no or very low monthly fees to minimize costs.
Online Banking OptionsEasy and efficient management of finances through online platforms.
Mobile App AvailabilityConvenient access to account information via mobile devices.
Card OptionsAvailability of credit and debit card options for business expenses.
Bookkeeping IntegrationsCompatibility with accounting software like QuickBooks for easier bookkeeping.
Payroll FeaturesIntegration with payroll programs for smooth employee payment processes.
Free TransfersAbility to transfer money without additional fees.
Convenient LocationsEasily accessible bank locations for in-person banking needs.
Extended Operating HoursBank hours that align with your business schedule, including after-hours services if needed.
Access to Credit OptionsAvailability of small business loans and credit lines.
High Cash Deposit LimitsAccommodation of high-volume cash transactions without excessive fees.
No Transaction LimitsUnrestricted number of transactions to suit active business operations.
Express Deposit OptionsQuick and efficient ways to deposit checks and cash.
Online Financial ReportingEasy access to financial reports for tracking and analysis.
Paperless OptionsEco-friendly, digital management of account documents.
Account AlertsNotifications for significant account activities to enhance security.
Liability ProtectionCoverage for unauthorized account usage.
Interest Payments on BalancesEarning interest on maintained balances.
Savings and Investment OptionsAdditional services for future financial planning and growth.
Rewards ProgramsBenefits such as cash back or other incentives for using the account.

Photo via Shutterstock

3 Comments ▼

Annie Pilon Annie Pilon is a Senior Staff Writer for Small Business Trends and has been a member of the team for 12 years. Annie covers feature stories, community news and in-depth, expert-based guides. She has a bachelor’s degree from Columbia College Chicago in Journalism and Marketing Communications.

3 Reactions
  1. I honestly did not even know some of these features existed. Great post. Very thorough.

  2. I like that the banks are now providing so many options for small business owners. There are now plenty of opportunities for us to manage our finances and investments.

  3. Quickbooks gives efficient solution for all the accounting details sometime you need to share your financial data/file details sometime you need to share your financial data/file to 3rd party vendor but it takes time quickbooks-accountant-copy help to resolve this issue.

Leave a Reply

Your email address will not be published. Required fields are marked *

*