Five signs it might be time to switch your bank

Remember that bank account you opened when you first started your company? It may have made the most sense for your business back then, but chances are that your business has changed, and your checking account could be costing you time, money, and peace of mind.

Entrepreneurs usually bank somewhere that’s familiar when they’re in the early stages. Unfortunately, that first banking solution isn’t always equipped to scale with your business. The wrong account can eat into your profits, slow down operations, and create major cash flow headaches.

Here are five telltale signs that you’re not getting what you need from your business checking account—and that it’s time to find a solution that sets you up for long-term success.

Sign #1: You’re getting nickel-and-dimed with fees

Small monthly charges can add up to a big cost over the course of a year, so it’s important to pay attention to every fee your bank charges. These can include monthly maintenance fees, as well as minimum balance requirements that come with penalties if you’re not able to maintain them. Some business checking accounts still charge fees for incoming ACH transfers and even overdrafts.

These fees can be particularly burdensome to small businesses operating on tight margins. Every dollar spent on unnecessary banking charges is a dollar that could have gone toward inventory, marketing, or growing your team. Luckily, modern banking alternatives like Bluevine have flipped the script on the traditional banking fee structure, even tailoring solutions to small businesses by reducing or eliminating many of these more or less  hidden costs.

Sign #2: Your account doesn’t play nicely with your tools

Accounting software like Xero allows you to manage your books, send invoices and stay on top of your cash flow, all in one place. However, not all banking platforms integrate well with other solutions, which can subject your team to time-consuming and error-prone manual data entry copying data from one platform to another. 

To avoid costly mistakes and save your team valuable time, it’s important to find a business checking account that syncs transactions seamlessly with your other financial tools. Your team, your accountant, and your cash flow will thank you.

Sign #3: Lack of money movement options

Fast and flexible money movement is critical if you want to be competitive in the digital era. We’re talking about being able to make standard and same-day ACH transfers, domestic and international wires, and easy mobile check deposits, without needing to visit a physical bank branch. If you feel like your options for depositing money, transferring funds, or paying bills are limited, it’s probably time to seek a new solution.

The good news is you might be able to find everything you need in one online banking platform. That means you’ll be able to manage your checking balances, organize budgets, accept customer payments, and pay your bills all from a single account.

Sign #4: Your money isn’t working for you

Many traditional business banks and credit unions offer little to no interest earnings on checking accounts. If they have a savings account option, you can usually earn a higher annual percentage yield (APY), but then you’re stuck moving money back and forth between accounts to take advantage of the higher rate.

Online business checking accounts are able to offer higher interest rates because they have no brick-and-mortar locations to maintain, and therefore have lower overheads. To make the most of your money, consider finding a banking platform such as Bluevine that lets you earn high-yield APY on checking balances so you can generate passive income on your working capital, without needing to move it in and out of multiple accounts.

Sign #5: Your banking tools are outdated or nonexistent

Your bank account should feel like a productivity tool, not a roadblock that slows you down, and you should be able to do all the essentials from your phone.

Think being able to easily view your finances at a glance, deposit a check from your phone while on the go, or set your invoicing on autopilot for ongoing clients. 

When you have a modern banking solution that works for you, you’ll be able to spend less time managing your money and more time doing what you love.

How to switch banks without disrupting cash flow

With a little planning, you can switch your business checking account  to a new platform without disrupting your accounts receivable, accounts payable, or daily operations.

Here’s a simple roadmap for how to make the switch as smoothly as possible:

1. Open your new account and keep both active during the transition.
2. Update the new bank’s payment info with vendors, payroll, and subscriptions.
3. Gradually move deposits and auto-payments to the new account.
4. Close your old account only after confirming everything works the way you want.

By keeping your old account open for a while, you give yourself time to set up your new account with the right payees, integrations, and automations.

The right banking tools make your life easier, not harder, and switching your business checking account can save you time and money, optimize your cash flow, and let you focus on what matters most: running and growing your business.

Bluevine is an online banking platform designed to help small businesses simplify their financial management – including time-saving accounting integrations with Xero – so they can spend less time banking and focus more on what they love.

As a Xero customer, you can get a 12-month free upgrade to Bluevine’s Premier plan when you open a business checking account. This offer is only available to Xero customers based in the United States. Apply now.