Not all financial services are alike. Some fit corporate portfolios better than others, and no two organizations will have the same needs. With that in mind, owners must look at their regular monetary activity and seek out financial services that best fit the habits of the business.
Compare and contrast
The best place to start is by looking at options provided by the company's current banking institution and see how they stack up against competitors and modern expectations. In a digital information era, businesses expect online, mobile and cloud operations, and entities that don't offer these options show a degree of inertia that up and coming organizations may not want to be associated with. More progressive banking options, financial services and payroll flexibility are common requirements of even the smallest businesses.
Seeking out the most modern options for corporate banking may mean opening an account at a new bank, but doing what's best for the company should take precedence. Getting services like online and mobile banking, check imaging and 24 hour assistance are just some of the nominal benefits that owners need to look for in a financial institution. They also need good loan histories and financial stability, because even with the economy starting to recover, bankruptcies are not impossible.
Individual accounts are only insured by the FDIC up to $250,000 so organizations with more than that amount may want to consider additional accounts anyway protection. Check if a specific bank offers this protection on individual accounts or if it's on a per-entity basis. Financial investment advice may be necessary for those with more than the indicated amount on deposit but not enough protection to cover these assets.
Owners should also compare the rates and offers their banks provide, as not all establishments provide the same terms. If commercial loans are a regular need at a corporation, for instance, a company may want to shop for the best rates on these offerings and stick with a bank that consistently offers the best options. Similarly, entities that perform a lot of high-value transactions may not want to partner with a financial institution that limits their regular online payment amounts or institutes holds for such payments. While fraud detection is useful, overly sensitive account limits can be a hindrance to business practices.
Banking on the go
Using online and mobile alternatives to a branch are also increasingly popular options, as they allow for financial management no matter where people are. Smartphones and tablets can even gain access to checking and savings deposits, make payments and track invoices using applications from their banks. These provide a level of convenience and flexibility that many small companies crave.
Not all entities offer this service, though, and those without apps may even lack mobile-ready websites, making it nearly impossible to get the same functionality out of these deployments. For businesses that want to use their tablets for all aspects of accounting and online finance, switching to a bank that supports this technology may be the best bet, especially because it indicates that the institution is keeping up with its customers and modern technology. Those stuck in the past won't provide the same level of service as more progressive banks.
The Better Business Bureau even backs mobile banking, though it does provide many security tips on how to keep assets safe. Since the rise of mobile's popularity, more hackers have been targeting these devices, so ensuring safety while maintaining functionality is critical. The BBB wrote that upgrading virus protection and other malware detection on all mobile devices used by employees will ensure that no data gets leaked, and using stronger passwords and encryption keys can help make mobile protection airtight.