Over the last decade, new technology – especially the Internet and smart phones – have changed our personal lives, and in many ways made them better. But the technology changes have affected more than just our personal lives – they’ve also brought many changes to small businesses and the way you bank.
In the past, you had to regularly go to your bank to manage your business’ money and transactions. Now, that’s drastically changed, thanks to Internet and online banking. We’ve put together some of the key advantages online banking offers, and how they can actually help you run your business better and more efficiently.
Advantage 1: Convenience
One of the biggest advantages of online banking technology is that it allows you to handle transactions and monitor your bank statements anytime, anywhere and anyplace. You can access your account on your computer or smart phone 24/7 – when it’s most convenient for your schedule.
Advantage 2: Fewer bank visits
Another great advantage is a new technology known as Remote Deposit Capture. It’s an online service that lets you scan and deposit checks from your home, office or other locations without having to go to your bank. It lets you make deposits faster, with less time spent driving to your bank. (To read more about Remote Deposit Capture, click here to read our Hands On article about this topic.)
Advantage 3: Faster transactions
When you conduct your banking online, your transactions are processed almost instantly. For example, you can make purchases or make payments with a debit card instead of a check, and the transactions shows up on your account almost immediately. This gives you more control of timing for transactions, and a better, more accurate view of your current account balance.
Advantage 4: Working with your accounting software
As a small business, you probably use an accounting software program. Many banks now let you tie your bank account information directly to your accounting software. This gives you more accurate and updated financial statements for your company. It also lets you view your financial statements almost instantly, without having to add your bank account numbers.
Advantage 5: Fund transfers
Many small businesses and entrepreneurs have multiple bank accounts – personal accounts, company accounts, savings accounts, etc. You often need to transfer funds from one account to another, and ACH (Automated Clearing House) transfers lets you do it relatively quickly. This can be a huge help in paying bills, meeting payroll deadlines and managing cash flow.
Advantage 6: Fast payment options
ACH gives you the ability to make payments from your business account to any external account. The most common uses for ACH are direct deposit payroll, vendor payments and membership or monthly dues. Business Online Bill Pay is another payment option that is commonly used by businesses to pay regular bills, such as utilities and credit card payments. Finally, wire transfers can also be initiated online, when transfers to external accounts need to be made the same business day.
These are just a few of the many changes and benefits new technology has brought to small business banking. Make sure you stay abreast of these changes. The more you understand about technology and banking, the better you can run your business.
Technology will continue to change banking in the future, so feel free to check out our Hands On Financial Advice from time to time to learn about the new changes. We’re here for you!