How can flexible banking help my business?

Most banks these days offer flexible banking; that’s online or telephone banking that gives you instant access to your business and personal bank accounts, wherever you are, whenever you want. 

If you are a business owner who is always on the go and who wants to be able to check their bank balance, transfer funds between accounts and monitor individual transactions to see whether payments have been received or made then flexible banking could be a way of saving you time and money...

What is online banking and who is it suitable for?

Online banking is convenient if:

• Your business is based far away from your bank.
• You regularly transfer money between different accounts (eg. current, deposit, business, personal); this process is quick and simple to manage online.
• You’re looking for competitive interest rates, which many banks and building societies give to online customers.
• Business online banking services are designed to accommodate computer users with varying levels of experience, from the beginner to the expert. In addition, there are usually help sections and customer support contact details in case you need further assistance.

Advantages of banking online

• You may not have time to visit your bank every week and, if your business is located out of town, getting to a branch can be time-consuming and expensive. With online banking, you don’t have to leave your office, workshop or armchair to do your banking – saving you time and money.

• If you’re too busy dealing with customers, orders, employees and many other business-related matters during the day, you might need to deal with accounts in the evenings or at the weekend. Banking online allows you to carry out your transactions at a time that suits you, which means you are able to concentrate on other aspects of running your business.

• If you are using bookkeeping software you may be able to download information directly from your online bank accounts into your books. This makes it easier to reconcile your business records with your bank accounts, since actual details of your income and expenditure will be automatically entered into your books. If you’re interested in using bookkeeping software with online banking then visit our Business Manager pages.

• Online banking allows you to reduce the impact of bank charges on your business finances. Instant access to account information helps you avoid incidents that can lead to unnecessary bank fees, such as unauthorised overdraft fees.

Disadvantages of banking online

• If you like the face-to-face relationship that you have with your bank, then online banking may seem a little too impersonal. However, you don’t have to abandon the good relationship with your bank to enjoy the benefits online banking can provide. Instead of a replacement to traditional banking, online banking can be used as a complementary tool to put you firmly in control of your finances.

What is telephone banking and who is it suitable for?

Like online banking, telephone banking is a useful alternative for managing your business account if you don’t have time to go into your bank and is increasingly popular with many businesses. Many banks now offer access to your bank accounts by phone, 24 hours a day, 365 days a year. Telephone banking is convenient if:

• Your business is based far away from your bank
• You regularly transfer money between different accounts (eg. current, deposit, business, personal), this process is quick and simple to do by phone
• You are on the move and need to be able to manage your account from wherever you are at a moments notice.

Advantages of telephone banking

• You may not have time to visit your bank every week and if your business is located out of town, getting to a branch can be time consuming and expensive. With telephone banking, your bank is on the other end of the line whenever you need it.

• You can manage your business account at any time, which is ideal if you are busy during the day with running your business.

• As well as the basics of running your business account – paying a bill, transferring money, setting up a direct debit and so on – you may also be able to apply for finance and make an appointment with your Bank Manager.

• Making payments by phone can simplify your banking – you don’t need to confirm the payments in writing, and you can check all your transactions against your statement when it arrives.

Disadvantages of telephone banking

• Telephone banking like online banking can seem impersonal, but like online banking, if you use it on conjunction with your regular bank account it can be a useful tool.