Small Business

6 Steps to Reducing Your Banking Fees as a Sole Proprietor

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Running a small business can be difficult. While you may not be able to predict how your business will do from one quarter to the next, one thing you can guarantee is that you won’t waste any of your money on unnecessary banking fees.

Banking fees can eat away hundreds, if not thousands, of dollars from your bottom line each year. Use these six tips to cut down on your banking fees so that you can invest more money into growing your business.

1. Reduce Accounting Costs

Look for a bank account that will provide you with free checks and free online bill pay services to cut down on costs. Why add costs when you’re paying your bills? Bill Pay can help your business avoid late payments by allowing you to set up automatic payments online. This will also save you money on postage and paper checks.

2. Stay Away from Monthly Maintenance Fees

Maintenance fees can rack up quickly. Read the fine print associated with all of your business bank accounts. Ensure that you are meeting all of the requirements necessary to avoid paying monthly maintenance fees. If you don’t anticipate maintaining a high balance in your account, you will want to search for a checking account that features zero monthly maintenance fees, regardless of your balance.

3. Avoid ATM Fees

If your business utilizes cash, ATM fees can easily erode your bottom line. You can avoid ATM fees by switching to a business checking account that will provide you access to a surcharge-free ATM network that you can access throughout the country. You’ll never have to worry about domestic ATM fees again.

4. Link Your Banking Accounts

Keeping all of your funds at a single bank can make it easier for you to transfer money quickly without any hassles. Running low on funds in your primary checking account and looking to move funds over from your savings account? Syncing bank accounts and having them at the same bank can allow you to transfer money in moments. Stop paying excessive fees for expedited wire transfers from one bank to another.

5. Know Your Business Cash Flow

Are you continually depositing and withdrawing funds from your business checking and savings accounts? Review the costs of the items – deposits, checks paid, and other debits – that you will have to pay for if you go beyond the maximum number of free items included with the accounts. Each individual charge may be less than a dollar, but if your business is highly active, you could be spending hundreds of additional dollars each year.

6. Maintain Minimum Account Balances

For many business accounts, the key to avoiding banking fees is to maintain minimum account balances. High-yield checking and savings accounts often require that you stay above this required minimum balance to avoid monthly maintenance fees.

The Basic Business Checking account from Axos Bank requires no monthly minimum balance and only a $1,000 minimum opening deposit. This is the perfect option for smaller businesses that may not be able to maintain a minimum balance from month to month as they grow. On the other hand, businesses that consistently have a high balance and are looking to earn a high return on their funds can take advantage of our Business Interest Checking account. It requires a $5,000 average daily balance to avoid monthly maintenance fees and earns a competitive interest rate.

For further information on the Business Checking, Business Savings, or other business banking solutions available from Axos Bank, please contact us by telephone Monday – Friday 6 a.m. to 6 p.m. PT at 1-844-678-2726 or by email at [email protected].

6 Steps to Reducing Your Banking Fees as a Sole Proprietor

This blog post was published by Axos Bank on November 26, 2019 and last updated on November 26, 2019.

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