Opening a bank account in the name of your business is a requirement when you run a company. By opening a business bank account, you can receive money from customers in the name of your business. What some people don’t realize however is that opening a business bank account is very different from a personal account. A business bank account makes it easier to get a line of credit, which is vital for all businesses.
The benefits a business bank account has as compared to a personal bank account are:
- It protects you from personal liability by separating your business account from your personal account.
- Customers can pay your company instead of making a check in your name. This is a professional way of dealing with work.
- A business bank account helps you establish a credit history that will help you when you want to expand your business or look for additional funds.
Select a bank
When opening a business bank account, the first thing to decide is the bank. To do this, you can either go with the bank with whom you have a personal account, or you can look for banks that offer extra services for businesses and open an account with them. Some banks offer special services for business customers, however, you may have to maintain a higher account balance to avail these services.
You should compare the services offered by different banks and the charges they levy before deciding. You can even talk to customers of the bank who already have a business account before deciding the best bank. It is important to understand the bank rates and fees:
- Interest rates: This refers to the interest offered for the account. Business accounts either offer no interest or offer very low interest.
- Interest for credit: Banks offer a line of credit for business customers. This attracts interest and you need to be aware of the interest rate they would charge.
- Minimum account balance: Almost all banks have a minimum balance amount that you must maintain the account. If you do not maintain this balance, a fee would be levied. You need to know how the balance is calculated and what the fees are
- Transaction fees: Depending on the type of transactions you perform the bank can levy a transaction fee charges. For instance, when you make a wire transfer from your account, the bank charges a fee. You should be aware of all the transaction fees charged.
Once you decide on your preferred bank, you can visit open an account, it may even be possible to open the account online. The requirements to open the business bank account depends on your business type. The following explains the requirements and documents that you need to open a business bank account depending on the type of business:
If you are running a proprietorship firm, then you will be managing the business on your own. You need to submit the following to open a business bank account:
- You need to have a tax identification number. In the US, this is referred to as the EIN. This number or code and the supporting document needs to be produced.
- You need to provide personal identification, which can include a Govt. issued identity card, passport, driving license, etc.
- License or approval for your business from a competent authority needs to be enclosed with the bank application.
Partnership companies would have more than one partner running the company. If you have a partnership company, then you need to provide the following to open a business bank account:
- Partnership agreement that lists the name of the business and the name of the partners or the document filed with the registering authority.
- Personal identification for all the partners.
- Tax identification number for your partnership firm or for the partners (as per applicable norms)
- A letter with the signature of all the partners approving the opening of bank account and indicating who will operate the account and sign checks.
Companies (Limited liability and Corporations)
If your company is incorporated as a limited liability company (LLC) or a corporation, then the following are the documents needed to submit to open a bank account for your business:
- Tax identification number
- Personal identification documents for the officials operating the account.
- Company registration document or business license (as applicable).
- The agreement, which may be in the form of articles of associations or articles of organization. This document should be the one filed with the registering authority. It should have details of the company, name of the owners or directors, and bye-laws (as applicable).
- A resolution by the company board of directors or other authority approving the opening of the bank account. The resolution or letter from the head of the organization must indicate the name of the person(s) who will operate the business bank account. The names of the person(s) who will sign checks must also be indicated.
Opening the account
When opening a business account, you generally need to fill out an application form at the bank with all your details and submit copies of all the documentation required. Some banks permit you to do this online. Once the account is opened, you need to make an initial deposit as per the minimum balance requirement. You can pay this money by cash at the counter or transfer it online from your savings account.
Most banks open the account immediately and you will be issued a checkbook to start operating the account. You will also be given the user ID and password for operating the account online. You may also want to obtain a business credit card that can be used for business purposes. Make sure you get account statements every month to keep track of your account transactions.
Opening a business account is one of the key activities that needs to be done at the time of starting a business. The procedure and documentation needed to open a business bank account depends on the form of business. The information in this article will have helped you understand all that you need to open a business account and the procedure involved.
Staff training crucial for SME recovery post-COVID
- 47% of UK’s top performing SMEs provide regular, formalised training for all staff
- Despite this, 15% of small businesses report to never training staff
- New findings come as part of an independent, holistic study into small business success, commissioned by Allica Bank to support British businesses
A new study, commissioned by business bank, Allica Bank, shows that the practice of regular training correlates strongly with high performance in SMEs and will be vital to businesses’ prospects of a swift recovery post-COVID. The study analysed data from over 1,000 companies and ranked their success on a scale that evaluated factors including productivity, growth, consistency and outlook.
Post-pandemic, many businesses will be focussing on day-to-day survival; it might be easy to forget long-term planning, of which staff training is a key component. Allica Bank’s findings indicate that small businesses should incorporate training programmes into their recovery strategy to ensure long-term viability. Training will improve morale, retention and boost the company’s credibility.
The study showed that routine staff training is a common characteristic among the most successful SMEs. 47% of the 100 highest scorers on the SME Performance Index provided training for employees at least on a quarterly basis. However, nearly half of all small businesses (46%) only provide training once a year or less, inadvertently hindering their growth and success prospects.
Frequency of training also differed across sectors. 34% of legal businesses provide training for staff once a month compared to just 6% in the hospitality and leisure sector. Whilst there will always be sector-specific disparities, firms in all industries can benefit from boosting and improving their training programmes.
Chris Weller, Chief Commercial Officer, Allica Bank, said:
“With so many concerns and barriers for small businesses to navigate in the immediate term, it can be difficult for managers to focus on the training and development of their teams. However, if COVID has taught us anything, it is that adaptability and resilience are invaluable.
“The provision of regular training not only builds these characteristics into teams but serves to maintain a sense of value and togetherness that will boost morale, aide retention and improve performance – all of which contribute to the ongoing success of a business.”
“There is no one-size-fits-all approach to training, but it’s vital for business longevity that staff are supported with a formalised programme of some description. Customers will respond well to a company whose employees demonstrate enthusiasm and competence. Employees also need to feel that their skills are constantly being improved and expanding. These skills will contribute to the success of a company and this will feed through to the bottom line.”
Allica Bank’s SME Guide to Success identified six ‘rules to success’ that were more likely to be displayed by top-performing SMEs compared to their counterparts. The full report contains a wealth of additional data and insight into each of these topics.
As part of its mission to empower small businesses, Allica Bank is making the findings freely available and running a series of free online workshops with relevant partner organisations for businesses to attend.
Aliya Vigor-Robertson, CEO, JourneyHR, the expert partner for Allica Bank’s training workshop, adds:
“Staff need direction and the knowledge that they are advancing in their career to stay motivated and engaged at work. An unmotivated, disengaged team is no recipe for long-term success and will ultimately hamper a business. Team members that lack tangible support from above are less likely to identify with their role and its duties, which is a completely natural reaction.
“Regular staff training is a key component of tangible support and will make the team feel secure in their career development. A happy team with purpose and direction will contribute to a thriving business”
What Is Globalization
What is globalization? Globalization, or inter-connectedness, is the ever-growing process of integration and interaction among countries, individuals, businesses, and even governments all over the world. Globalization has rapidly accelerated in recent years because of advances in communication and transportation technology. This allows us to be able to get from one country to another quickly and easily. This also allows us to communicate freely use the Internet to connect with our friends and families around the world.
So what is globalization and why is it important? Globalization will benefit many people around the world who are looking to travel more freely, save money on their monthly expenditure, be able to meet new friends and relatives from different parts of the world, learn more about a new culture, and take part in trade and commerce.
Globalization will benefit all of us because there will be more opportunities for everyone to participate in global markets. People in different countries have access to resources, information, and products they wouldn’t have otherwise been able to afford. There are also many opportunities for people to work at home.
Globalization is not just an economic boon, but it can also benefit all of us in other ways. As globalization continues, the boundaries between individuals, states, and countries will become less porous. There will be fewer political conflicts in the world, less violence, and a greater sense of cooperation, tolerance, and peace. These are all positive impacts of globalization.
However, globalization has also created some negative effects as well. It has caused people from one country to move to another to take advantage of globalization. This is also leading to some negative consequences such as a reduction of jobs in some countries. The effects of globalization also include increased competition and unemployment in many countries. Due to this decrease in jobs, wages are dropping.
The only way we can stop globalization is to make sure that we know what it is and what its benefits are. We must understand globalization and its impact on our lives and make sure we are ready to accept the changes that it may bring. if it is inevitable in the future.
The key is to be educated about globalization. There are plenty of books, websites, and television shows that explain how globalization is impacting us and the rest of the world. Globalization is not always bad, but we must be careful not to lose sight of its positives.
In the end, globalization is here to stay, so we must learn to live with it and embrace its benefits. We cannot fight it and try to fight it off, but we must learn to deal with it. And we can do that by educating ourselves. Globalization is here to stay for the long term but we must learn to adapt to it and learn how to live with it.
Globalization can be beneficial for all of us, but it has also caused many problems in the past. There were many cases of unfair trade practices and there was the rise of unfair labor practices. Some people argue that globalization has also reduced the pay of most Americans. So while globalization is definitely not all bad, we should understand that the benefits of globalization are not unlimited. and that we must be willing to give it some limitations and accept some sacrifices.
The biggest benefit of globalization is the ability for all of us to communicate with each other easily. The ability to connect with other people across borders makes it possible to share ideas, information, and knowledge. Since we can communicate with each other, the chances of getting a good price for our goods or services goes up dramatically. and it also allows us to save money by buying in bulk. This also translates to more savings on our end.
As mentioned earlier, globalization has brought about a change in the way people work and live because people are no longer tied down by jobs. They now have the freedom to travel and do what they enjoy.
As globalization continues, there will always be some people who are unhappy with globalization and are afraid to open their eyes to new opportunities that are available to them. But that is okay; this is part of the process of globalization.
What Is Microsoft Teams
Microsoft Teams is an application and web-based collaboration tool that combines chat, videos, online collaboration, document storage, and collaboration with other applications. The service integrates well with the Microsoft Office 365 business solution and features numerous extensions that can integrate well with other non-Microsoft products, like SharePoint. There are many different versions of Microsoft Teams but here are some of the basic functions that all versions offer.
Teams also offers a variety of options for people to create and customize their own groups. This feature provides a way for people to organize their teams within Microsoft Teams. For example, there may be teams for business projects and then another group for personal tasks or social tasks. There are also different types of teams which include teams for social, personal and business.
Microsoft Teams allows users to make lists of files and documents and view them from different perspectives such as in the document viewer or from another Microsoft Teams project. This feature is called “project pane”, and it shows a summary of each of the files in the project. There are also sections for all files in the project that you can see in the “Files” pane.
Microsoft Teams gives users the ability to share information and collaborate on these shared items. A user can create a document that has other people add comments or attach files and then save the document to a list so that other people can view the document in a Microsoft Teams document viewer.
Another feature of Teams is the ability for you to invite other team members to work with you. A user can join a team and then invite other team members to collaborate with the team members who join the team. You can also invite team members to join a new team. When a team member joins a new team, they will be automatically added to your existing teams and the teams will merge together.
Microsoft Teams provides a number of different ways for you to collaborate with others and see the files and documents of others. These include groups and threads in the main document viewer. You can search your files using the search box in the document viewer and you can share your documents with others by email.
Microsoft Teams provides users with a variety of different tools to help you organize and manage your teams. You can assign members to specific teams, assign permissions to members, create custom groups, organize tasks and events, and organize files and documents into groups.
Microsoft Teams can help you build a team and create a collaboration culture that you want to create at your organization. You can use this tool to build effective teams and increase productivity and improve your relationships within the organization. Microsoft Teams offers a variety of options to help you get started and become more productive quickly and easily.
Teams are created easily. If you have several departments within your organization and need to create a team for each department you can do this easily. Teams are made easy and you can get your teams up and running quickly.
One of the best features of Microsoft Teams is the ability to invite people from around the world and let them work with the same documents and projects. You can have the documents and projects organized and shared in the same way throughout the entire organization, regardless of what country they were created in. You can create a similar project in the same language that they were created in and share it with other employees in the organization.
One of the most amazing features of Microsoft Teams is the ability to have multiple team members edit and view the documents and files in the same way. With Microsoft Teams you can have a document and have people edit the same document at the same time without any problems. The changes that you make can also be seen by other team members and can be modified by them without ever needing to send the document again.
Microsoft Teams is the perfect tool for building a powerful and effective collaboration culture. You can share documents and files in the same way that the rest of the organization can view the information.
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