• January 12, 2024
  • Posted by General Electric Credit Union

Essential Tips for Managing Your Business Checking Account

Running a successful business involves careful financial management, and a crucial aspect of this is effectively managing your business checking account. Make everyday purchases with confidence and navigate the complexities of business finances with the checking account tips below.  

5 Business checking account tips 

1. Choose the right account

Not all business checking accounts are created equal. Research various options offered by different banks and credit unions to find an account that suits your business’s needs. Look for an account with low fees, high transaction limits, convenient access to cash through a wide network of ATMs, and convenient online banking features. 

The best financial institutions also have a dedicated Business Services team. They’ll offer guidance on the ideal checking and savings accounts for you, giving you a much-needed competitive edge. 

2. Keep personal and business finances separate

One of the cardinal rules of business finance is to keep personal and business finances separate. Establish a dedicated business checking account to avoid confusion and simplify accounting processes. This clear distinction makes it easier to track business expenses, calculate taxes, and maintain financial transparency.

3. Monitor your account regularly

Set aside time each week or month to review your business checking account. Regular monitoring helps you identify any discrepancies, stay on top of your cash flow, and detect unauthorized transactions

Utilize online banking services to check your account balance, track transactions, and receive real-time alerts for unusual activity. Positive Pay is an automated fraud detection tool that minimizes your business’s risk of fraudulent activity by notifying you and allowing you to reject unauthorized checks or ACH payments.  

4. Embrace strict expense tracking

Categorize and record every transaction accurately, whether it's a purchase, payment, or withdrawal. Modern accounting software and apps can streamline this process, making it easier to generate financial reports and analyze spending patterns.

5. Set up Card Controls

Implement Card Controls in online banking to prevent fraud and unauthorized transactions. Limit access to your business checking account by:

  • Setting spend limits
  • Blocking international purchases
  • Opting into alerts for real-time notifications
  • And more!

You should also regularly update passwords and authentication methods regularly. Avoid any information that is publicly available, such as your pet’s name or the name of the street you live on, as bad actors can easily access this information to guess your password and access accounts. 

A well-managed business checking account is the cornerstone of financial stability for any enterprise. By choosing the right account, maintaining financial discipline, and taking a proactive approach to account security, you can ensure your business checking account remains a reliable tool for your company's success. Businesses in Ohio, Kentucky, and Indiana turn to General Electric Credit Union (GECU) for business checking accounts. Our Simply Free1 business checking accounts comes with features like: 

Back to blog home