checking

5 reasons for a business checking account

Empower your employees
Next
Slide 3 of 6
Previous
Empower your employees

If the weight of making deposits, signing debit card receipts and mailing checks is becoming too heavy, a business checking account gives you the option to delegate some daily tasks to your trusted employees.

A business checking account can have multiple signers, helping to ensure payments are made on time, says Raj Tumber, Las Vegas-based business mentor and counselor at Score, a nonprofit partner of the Small Business Administration.

In addition, Camille Ussery, president of the Richardson, Texas, branch of ViewPoint Bank, says outside of giving office staff the authority to make transactions, business checking account holders also can hand over access to outside help. Ussery says many of the bank's business customers authorize outside accounting services to review their account statements and reconcile their books.

However, beware the drawbacks to handing the business baton to other people. Tumber says if a sole proprietorship business checking account is under the owner's Social Security number, personal financial liability increases if employees are involved in embezzlement or make accounting errors while handling the account.

"It's always best to restrict the account to authorized personnel to minimize the risk of financial liability," Tumber says.


Next
Slide 3 of 6
Previous

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

advertisement

Blog

David McMillin

Angry customer gets back at bank

A disgruntled banking customer has taken a sneaky route to revenge by embarrassing the institution online. How did he do it?  ... Read more

Partner Center
advertisement

Connect with us