Online business banking: what’s the difference?

Running a business is a challenging task. Save your time and money by managing your finances via the Internet! Virtually every business bank account now comes with a set of handy online tools which you can use to run your business more efficiently. For example, you can separate your business and personal expenses, automatically pay recurring bills or open an account in a foreign currency. Banking has never been easier or more convenient! Read more about online business banking services in our article.

The results of numerous surveys indicate that online business banking system has become tremendously popular. Basically, it has the same benefits as consumer one: you can access your account 24/7; manage your finances on your own schedule; check your balance and pay bills from anywhere you want. Plus, Internet banking is an excellent way to save money by making cheaper payments online. 

There are two main market drivers contributing to the growth of online business banking. They include the following categories: online banking functionality (online bill pay, funds transfer, credit card applications) and online information needs (the ability to view online statements, balances and transactions).

Key features of online business banking 

With online business banking you can: 
•    Pay a bill online. It is quicker and more secure to make a payment online than to write a cheque. Just enter the information about your payee and click the “Make Payment” button to complete the transaction. It’s that simple! You can save the details of suppliers you have paid to repeat electronic payments.
•    Automatically pay recurring bills. You can give instructions to your bank to make a payment to a supplier or an employee on a regular basis.
•    Schedule bills to be paid in advance. You can set up payment to go automatically on a specific date in the future. All banks guarantee that every scheduled payment will be paid on time.
•    Make immediate transfers between accounts. Do you have several business bank accounts? Moving cash between them takes seconds, and typically happens on the same day. In addition, many banks let users make transfers to accounts in other financial institutions.
•    View detailed account activity including current balances. You can manage your finances by monitoring exactly when customers pay you, and when money leaves your online account. 
•    Review account transaction history. Online statements are very useful for getting the information you need quickly. You can search your payments by transaction type, date, description or amount. Some accounts let you get annual or quarterly reports detailing all purchases that were made on your account. 
•    Export balance and transaction information to other software package. You can export account data into bookkeeping programs like Quicken or QuickBooks. It will help you save time reconciling your bank account.
•    Access to a comprehensive range of complementary business products. You can apply online for a business credit card or a small business loan from the same bank if you get short of cash in the middle of your business process. Or you can ask for an overdraft to cover some urgent expenses. 
•    Open accounts in a number of foreign currencies. This service is very convenient if you are trading with foreign partners. 
•    Set up access and control rights for other users. For example, you can allow account viewing and management to several trusted employees and accountants with varying levels of authority.
•    Place a stop payment on a check or a range of checks. Don’t have enough money? Just stop the transaction anytime you want. 
•    View your check images. With online business banking, you can view and print scanned images of the front and back of all checks you have written. 
•    Order a new cheque book. Save yourself at least one trip to the bank! If you need a new cheque book, many banks will offer you to order it online. It is quicker for you and cheaper for the bank.
•    Get account alerts. You can sign up to receive free updates on your balance and your last transactions sent to your e-mail or wireless device.
•    Enjoy risk-free guarantee. Many banks promise to cover any losses if there's ever any unauthorized use of your online business account.

Nowadays banking institutions are becoming more in tune with the needs of their business customers. They work with third parties to develop innovative and easy-to-use online banking services to help businesses thrive and grow. For example, some banks offer users to save on the costs of promoting their business, take advantage of information, tools and guidance needed to plan and launch their business and even get free advertising on Google. 

Getting started is easy

One of the basics of online business banking is to set up a business bank account. It means that you need to have a credit card, savings, checking or loan account for authentication. After that fill out a quick, one-time enrollment form to get a username and password to access your business account online. Once you sign up, you will be able to access it anytime you want from your bank's homepage.

Some banks like Chase allow users to view both business and personal accounts under a single User ID. It is very common for small businesses like multi-level marketing and self-employed sole-proprietors such as consultants and realtors. This option helps them reduce their expenses and bank fees. However, many experts believe that it will create potential problems for the business in the future. 

For example, when it comes to declaring income and expenses from the business, you need to have personal transactions and business transactions separated. However, it’s not a secret that some small business owners use their company’s funds to cover their personal expenses because they see no difference what to spend - it is also their money! Be careful: by doing so, you can get in trouble with the IRS. 

That’s why take the time to open a business bank account to simplify your record keeping and life. Run your business as a business to gain profit! You can shop around for the best offers because they can vary in fees and features. And don't forget to consider that your business may grow. 

One of the main issues that holds back some business owners from adopting online banking is security. They are afraid that their online accounts can be penetrated. Luckily, it is very unlikely that your sensitive financial information could be stolen by hackers – banks spend thousands of dollars to keep all their accounts safe. They use an encryption protocol to prevent any security breaches.  

Online business banking is a fast, easy and convenient way to do banking for any business. Make the most of every tool available to you!