Lesson Overview

Choosing the right bank account for your small business is a crucial step in managing your wrestling club’s finances well. The right account can help you streamline your financial operations, save on fees, and access essential banking services while saving you time. In this tutorial, we’ll walk you through the key considerations and steps to select the best bank account for your wrestling club.

Understand Your Business Needs.

Before you start comparing bank accounts, it’s essential to understand your business’s unique financial requirements. Consider the following factors:

Business Type

Different types of businesses have different banking needs. For example, non-profit might have different banking needs for multiple people having access that a single member LLC Wrestling Club does not need.

Transaction Volume

Evaluate how many transactions (deposits, withdrawals, and transfers) your business conducts on a monthly basis as this can determine if you want a business checking or savings account. Your fees may also vary based on transaction volume.

Cash Flow

Consider your business’s cash flow and whether you need a savings account or a checking account, or both. Some savings account’s limit your withdrawals to 6 per month, or you must pay a fee to access additional withdrawals.

Financial Goals

Determine your short-term and long-term financial goals, such as saving for expansion, managing cash reserves, or handling payroll.

Research Different Banks.

Once you have a clear understanding of your business needs and the type of account you require, research different banks and financial institutions. Consider the following factors:

Factor

1

Fees and Charges.

Compare account fees, transaction charges, and any minimum balance requirements. Currently many business checking accounts require you to hold a minimum balance of around $1,500 or pay a monthly service fee of $10-$20.

Factor

2

Location.

Evaluate the bank’s physical locations, ATMs, and online banking options.This is sometimes overlooked. A covenant location to make deposits and withdrawals can sometimes save you hours a month in travel for your club.

Factor

3

Account Features.

Look for features like mobile banking, remote deposit, and integrations with accounting software. Chase Bank has one of the most robust mobile banking applications and the majority of your business can be managed off site.

Factor

4

Customer Service.

Consider the bank’s reputation for customer service and support.

Read the Fine Print.

Before committing to a bank account, carefully review the account agreement and terms and conditions. Pay attention to:

Fees and Penalties

Understand the charges for overdrafts, wire transfers, and other services.

Interest Rates

If you’re opening a savings account, check the interest rates offered.

Account Restrictions

Ensure you’re aware of any limitations on transactions or withdrawal limits.

Ask for Recommendations: Seek recommendations from fellow business owners, accountants, or financial advisors who can provide insights into banks that cater to businesses similar to yours.

Open the Account.

Once you’ve chosen the right bank and account type, visit the bank or apply online to open the account. You’ll typically need to provide essential business documents, such as:

  • EIN (Employer Identification Number)
  • Social Security number
  • Business formation documents
  • Personal identification

Opening a business bank account can take anywhere from 1-2.5 hours in person at a bank. Make sure you allocate enough time for this and go in with all the documents you need to complete it in a single visit. If you have multiple members in your LLC, both must be present to open the account and complete the necessary forms.

Non-Proft Club Tip

If you are opening a business bank account for your 501(c)(3) organization, make sure to have the proper checks and balances in place for signatory and check writing. Make sure your treasurer is set up as a signatory on the account.

Monitor and Review.

After opening your business bank account, actively monitor your transactions, track expenses, and periodically review your account to ensure it continues to meet your business’s needs.

Conclusion

Make your primary decision based on what is going to make it easy to manage your day to day operations for the business. Examples of things that might be are red flag for a bad fit – a hard to get to location for you, your treasurer, or a partner. A lack of online banking services. High fees and high account balance minimums often don’t make sense for smaller clubs.

End of Course.

Move Onto Next Course: Starting a Wrestling Club Level 2

You’ve got members, momentum, and a system that works, but now it’s time to create a stable foundation for long-term success.