It’s impossible to run a business without a bank account. However, that doesn’t mean that you should just accept all the costs involved in having a business account or credit card without question.
Minimising costs for your business is key to ensuring its success, especially in the early days. There are a number of ways that you could potentially reduce business bank charges.
Understand what you’re paying for
Make sure the fees on your account have been properly explained to you and that you haven’t been given an account with unnecessary services by default. If there are multiple types of account available, find the one that best suits your type and size of business.
Reduce your transactions
Most banks charge per transaction so the fewer transactions you have to do every month, the cheaper your bank fees will be. Avoid expensive transaction too, such as depositing cheques.
Go for bundled services
Accounts that bundle services into one overall monthly fee can work out cheaper. Go for an account that includes a certain number of free withdrawals, transfers and deposits in the monthly fee. Also, make sure that certain services, such as internet banking, are included.
Consider alternative payment systems
If you need to accept credit card payments, consider some alternative payment systems before defaulting to your bank’s credit card point-of-sale machine. These machines can be expensive and some banks have penalties if a minimum spend is not achieved each month. Look into other options such as SnapScan or Yoco.
Don’t use other banks’ ATMs
ATMs from banks other than your own will charge you extra to use them. These fees can sometimes be very high and even though it might not seem like a big deal, these amounts add up fast. Consider the accessibility and convenience of ATMs when choosing who to bank with.
Compare banks’ fee structures before settling
Most bank accounts have a monthly account fee and then additional fees for various transactions. It might be tempting to go for the bank with lowest account fee but don’t forget to consider the transaction fees as well. All the major banks release their fee schedules annually, making it easy to do a comparison.
Ensure your account is never overdrawn
Banks will often honour a debit from your account even if there aren’t enough funds to cover it. This is great at the time of the transaction but it also means you’ll be charged a fee later down the line.
Avoid additional cards
Additional cards or garage cards on your business account often carry fees. Extra cards can be useful but only have as many cards as you absolutely need.
Get rid of unnecessary add-ons
Reward programmes, for example, can equal great savings in the long run but only if they’re properly utilised. Check to make sure there aren’t any superfluous add-ons attached to your account, such as unnecessary insurances that are already covered elsewhere.
Reducing business costs with The Workspace
Another way to reduce overheads is to consider a serviced office or coworking space from The Workspace. Save on staff and equipment costs by making use of our fully serviced workspaces, including reception, call forwarding, safe parking and meeting rooms.