Many business owners think of their bank as a place where they have an operating account, maybe a savings account, and a line of credit or a loan. A good business bank can be a far more valuable partner than that, helping not only with immediate business needs, but planning for the future.
Too often, the average business doesn't expect enough from their banking partner, sometimes because they’re too busy running or growing the business, or because they think their business isn’t large enough. But, a business bank can help your business thrive.
1. Manage cash flow.
Every business understands how important cash flow is. But, many wait to call their banker until they have a cash flow challenge. Or their bank only offers packaged solutions that feel like overkill. A solid cash management team can work with clients to establish a cash flow analysis, before they have a cash flow problem. They can examine receivables and payables to identify cash cycles and recommend tools and strategies to manage seasonal or other irregular cash flow, as well as identifying processes to reduce fraud risk.
2. Streamline payroll and payments.
A business bank can also help customers with automating functions like payroll and recurring payments to save time. Careful planning also keeps cash in the business. With digital solutions, businesses can manage their day-to-day cash flow more effectively, since they are not waiting for checks to clear. Payroll services providers also handle tax withholdings and assist companies with state and federal law compliance. Corporate debit cards, merchant services and other tools can help maximize control and efficiency of expenses and income.
3. Align your banking, tax and growth strategies.
Don't let your tax minimization strategy inadvertently undermine your banking needs. But when you come to the bank and need that emergency line of credit, your banker is going to look at your tax return. Consider meeting at least annually with your banker, your attorney and your tax advisor as a team. As well as addressing tax strategies, this time can also be devoted to identifying growth strategies or business transition strategies.
A good strategy is to have the bank to perform an annual cash flow analysis. As your business grows, opportunities to save money or manage cash flow more profitably will emerge.
Whether your business is large, small or in between, bankers are trusted advisors who can and do help business owners build and grow their companies. A good business banker can help identify and pursue important growth opportunities. Involving your banker in your business not only strengthens your relationship with the financial institution, but gives you an important partner.