Business bank accounts can be pivotal for managing your business’s funds, taxes and keeping everything organized. But when it comes time to switch business accounts, it can be a bit of a pain.
If you need a more detailed list of steps in switching accounts, here are seven clear steps:
Here is a quick checklist to have handy when switching accounts:
Yes. Ideally, it is worth your time to keep both accounts open for at least one to two billing cycles.
Keeping both accounts open can help you catch annual charges, clients that pay on a less-regular basis or irregularly, and catch any outstanding checks you might have missed.
If your old business account has a minimum balance requirement, or it takes a while for everything to switch over, just keep enough in the old account to avoid overdrafts or minimum balance fees.
Not usually. Switching business accounts, opening a new business account or closing an old one typically doesn’t impact your business credit score.
Business credit bureaus like Dun & Bradstreet, Experian and Equifax track loans, credit cards and payments to suppliers — not business checking or savings accounts.
However, there may be a few exceptions to this:
Click the Checking or Savings tab to see those types of accounts. Narrow down top business accounts by fees, APYs and perks. For a better look, tick the Compare box on multiple accounts for a side by side comparison.
The Finder Score analyzes and evenly weighs business accounts against multiple factors, including monthly maintenance fees, opening deposits, overdraft fees, wire transfer fees and transaction limitations. We also award accounts that offer extra perks not normally offered, such as annual percentage yield (APY), without penalizing accounts that aren’t interest-bearing.
The Finder Score analyzes and evenly weighs business accounts against multiple factors, including monthly maintenance fees, opening deposits, overdraft fees, wire transfer fees and transaction limitations. We also award accounts that offer extra perks not normally offered, such as annual percentage yield (APY), without penalizing accounts that aren’t interest-bearing.
Switching business bank accounts can take a few weeks, but it’s mostly a matter of order.
Open your new account first, then move over payments, deposits, payroll and tax payments. Keep both accounts open for a billing cycle or two, and only close the old one once everything has cleared and you’ve downloaded your statements. Your EIN and business credit stay the same, so the main risks are missed payments and bounced checks, which a good checklist and some overlap time can help prevent.
Looking to switch to a new business bank account? Compare the best business checking accounts.
Business accounts tend to require more documentation than personal accounts, but it’s pretty straightforward.
Xero, Wave, FreshBooks and Zoho Books are some of the closest Quickbooks competitors. Compare your options here.
Here’s how we rate business checking accounts, covering what we look for in fees, cash deposit, opening requirements, transaction limits, APY and account features.
A property management software and account designed for landlords.
Find the best business bank accounts for LLCs with low fees, software integrations and extra perks like ATM reimbursements.
The Square Savings account is a solid choice for business owners who want to automate their savings.
See how the Do More Business Checking business account with no monthly fee compares to others in the market.
Small business owners can earn up to 3% APY with Bluevine’s business checking account that accepts cash deposits.
Compare the best free business checking accounts available with no monthly fees, such as Bluevine, NBKC, Found, Novo and Axos.
The best business savings accounts are available from Axos, Live Oak, Bluevine, First Internet Bank and NBKC.
