Businesses come in all shapes and sizes, each with its own focus.
In the world of banking and finance, we categorize them as gig, micro, small, medium, large, and corporate treasury. They can also be sole proprietors or corporations, each with various statuses.
For many businesses, maintaining a separate bank account isn’t just a good practice; it’s often a legal requirement. Obtaining an Employer Identification Number (EIN) from the IRS helps establish the business as a distinct entity, separate from its owners.
Even as a sole proprietor, it’s crucial to separate your personal and business finances.
This practice not only simplifies and streamlines your accounting but also safeguards your personal assets from potential business liabilities. This separation is crucial for legal protection and ensuring compliance with regulations.
Engage New and Modern Services
A business banking account can transform the way you manage payments, making the process smoother and more efficient.
As banks and credit unions become more aware of the challenges fintechs and disruptive innovations like Venmo, PayPal, Square®, and Shopify® pose for them, many modern financial institutions are revolutionizing the services they offer, empowering SMBs with affordable business accounts that support cash flow, accounting, loans, receivables, payments, payroll, and payables.
30 years ago, if a side hustle or a micro-to-small business owner approached a financial institution for these services, they might have been met with skepticism. Oh, how times have changed!
Elevate Your Competitive Edge
Opening a business account with built-in, modern technology introduces your business and your customers to innovations like electronic payment acceptance, digital invoicing with digital payments, credit and cash flow analysis, and so much more.
It not only sets a foundation for the future by leveraging convenient, accurate, efficient, and demanded services by your customers, but it also improves your professional image and enhances your competitive edge in a crowded industry.
By leveraging technology and automation, you can also reduce your overhead cost.
With all your business income, expenses, and cash flow reports readily available, you won’t need to hire others to manage these tasks. In fact, having a separate business account minimizes the chances of your personal expenditures or income being questioned.
Embrace Modern SMB Solutions
As a business owner, using modern banking tools can add a refreshing edge to your operations – putting you ahead of the curve.
You might even start questioning how and why you’ve managed your payroll the old way for so long when you could have streamlined it with solutions like Fingercheck – a solution designed to help you efficiently manage your payroll directly from your bank account!
You may also ask yourself why you relied on consultants or struggled in the dark when you could have easily accessed solutions like Monit through your digital banking app – leveraging a “digital CFO and consultant” to guide your day-to-day operations with insights and recommendations.
Getting Paid Is Cool, Right?
With offerings like Autobooks and MOOV, you can provide various payment options for your customers, making the process of getting paid faster and easier – ensuring you receive compensation for your services in a way that suits your clients, too.
Now, for bankers reading this article, here’s why it’s crucial to enhance your SMB services: any business aiming to succeed, grow, and thrive must continually reimagine their strategies, tools, and approaches to navigate change effectively and cost-efficiently. Every business undergoes cycles of transformation.
The question is: when the time comes for SMBs to seek your support, are you prepared with the right products, services, and tools to meet their needs?
Modern Digital Business Banking
There are three things every financial institution in the U.S. is always doing ... they’re either 1.) leading the way, 2.) catching up, or 3.) doing nothing and falling farther behind.
The modern SMB accountholder doesn’t see digital applications that end with a need for in-person banker follow-ups as revolutionary, life-impacting, or impressive. The reality? If you don’t offer it, they will go find someone who does.
Businesses of all sizes are seeking an accountholder journey that empowers them to self-service, digitally engage, receive instant decisions, and access niche services tailored to their needs – on their timelines. A streamlined approach makes banking easy and more acceptable for SMBs. When you offer services that automate from start to finish – separate from any in-person finality or intervention – you’ll see a remarkable transformation and ROI.
Execute on Primacy
Primacy does not mean you win every time.
Primacy means your accountholders think of you first – and more times than not – when they need to get something done. To achieve primacy, you must invest in and execute the things your accountholders value. In Jack Henry’s case, we’re a well-rounded financial technology company that invests in and builds best-of-breed products and services to reduce the barriers to financial health for people and their communities.
Our end-game is the starting point of building and providing for our customers.
Bridge the Technology Gap
Do you recognize the link between supporting your SMB clients in their payment processes and your own growth and success?
You can effectively bridge this gap by investing in an innovative, digital, and modern banking experience.
Part of this new banking experience includes transforming your traditional lending practices – such as lines of credit and SBA loans – by integrating technology and exceptional service. Leveraging digital banking to streamline the management of loans, credit, and SBA processes will help ensure efficiency and create a seamless experience for your clients.
In addition, understanding cash management services, including ACH, wires, RDC, and payments is another key aspect of transforming your SMB banking experience. Not every business fits into the same treasury product model, and not all SMB solutions can meet the needs of larger treasury operations.
One size does not always fit all.
Learn more about our tailored SMB solutions and how you can enhance your SMB banking experience.
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