You have a well-oiled machine to work on. Your business is set and you have your objectives in clear view.

This is your vision for your company - to rise to the top. But it is easy to get lost on the way. If you don't get your business banking right, you will truly be lost in this competitive world.

So here’s what our financial experts from Karbon Card have to tell you about the most common business banking mistakes to avoid in the process.

Read on…

What Is a Business Bank Account?

If you are starting a business, or if you have been in it for a long you would have a business bank account by now. If you don't, then open a business account immediately.

Banking services for business units are called business banking facilities. For businesses, including LLPs, opening a separate business account opens the gates to business loans and credit, which is highly important to raise funds for the company.

Some business owners do use their personal bank accounts but this should be strictly avoided.

Business Banking Mistakes To Avoid Online

Here are business banking mistakes to avoid online:

1. Personal Account Instead of Business Account? Please No!

If you are serious about your business plans a separate corporate bank account is a must. Not only will it help in easier accounting but tax planning can also be pre-planned.

And if you are smart, then you would also know getting non-collateral credit from corporate banks is the way forward to expand any business. Raising funds, then, wouldn't be a problem.

Take Karbon for example- KC users get a High credit limit, great cashback and a flexible credit cycle, which is most suitable for startup firms.

2. Not the Right Fit? Not the Right Bank!

There are many banks that have a lot to offer- Low interest- business loans, collateral-free credit, and highly advanced payment software to ease business accounting.

Don't look for the best business bank account, because it wouldn't matter if it isn't the right FIT.

What suits your business needs, only you will know. So choosing the right bank is in your hands. But the general idea is, in the post covid era, neobanks are all the rage.

The simple reason is that reward incentives, withdrawal caps and top-notch accounting software are what you need in this digital world.

Incidentally, neobanks have cropped up for this very reason. Neo banks like Karbon Card exist solely to ease business banking problems.

For example, Karbon’s cashback card allows you to get up to 1% cashback and instant spending after top-up

3. Not Tracking Budget? Start Now!

They say it is easier to get a loan than to repay it.

It is true.

Businesses fall back when they don't track their budget and continue taking loans even when they don't really need one.

If you can't repay, you cannot reinvest.

It's almost like you lost the match even before playing it.

Moreover, it is important to have advanced software accounting tools to track payments which traditional banks do not offer. So choose trusted corporate banks wisely.

4. Never Ever Combine Personal and Business Credit Card

In case your credit usage exceeds 30% while using a personal credit card for business then it will hit you where it hurts most- your credit score

Additionally delayed payments can cost more to your company more than you know it. So it is best to use a separate corporate credit card for business expenses.

In this way, you also get to track your credit score, budget and accounts expenditures.

5. Manual Tracking of Payments

Here’s a reminder- you DONT live in the 1700s.

We have software, a system in place for calculations, and vendor payment portals to deal with bulk transactions. So use it!

Never, never assume that you can get away with manual tracking and expect to see good accounts efficiency.

Financial Automation is a must. Period.

You wouldn't have to deal with banking holidays, trust issues from vendors, or even server issues for finishing transactions. Automated banking, can help you with –

• Invoice payments
• Automating payroll transactions to employees
• Simplifying invoice generation
• Manual Bulk Payments
• Unlimited maker-checker

6. Using Multiple Software - Don’t Be Confused

Time is everything. You cannot afford to waste your time handling different applications for different tasks.

One dashboard, One screen, One click. That’s the goal.

It could be for 24x7 payment processing, bulk payments, beneficiary management, payout links, invoice tracking, GST calculations, cost visibility or any other task.

Choose to have one neobank for all your functions.

7. Not Using Technology

With advancing technology, it seems like businesses are constantly evolving to adapt as well.

So it is time you make the switch from traditional banks to online banking.

Why?

Because Service, quality and promptness - are 3 qualities lacking in the banking front, which online business banking can provide quickly.

Pro Tip: Look out for an online bank that provides automated vendor payouts with unlimited beneficiary additions. This can help you with automated TDS and GST calculations for vendor payments as well.

Karbon Card- Your Problem Solver

We wouldn't just talk to you about the problem and not give a solution to business banking mistakes you need to avoid.
No, we wouldn't do that to you. So our simple suggestion is Karbon.

Karbon is a B2B payment tool created for businesses of all shapes and sizes. It automates supplier payments, monitors real-time spending at the employee level, and provides uncollateralised funds to businesses.

So we think, for starters, you should take a look at our corporate credit card website.

If you like what you see, then you can jump in for a super quick demo. We know it will be worth your time!

Ultimately efficient financials is all that you seek, isn't it?

Author Bio

Ramitha Ramesh is the editor at Karbon Business, renowned for her expertise in SEO content marketing strategy for a diverse clientele across the US, UK, and India. With a penchant for exploring the fast-paced realm of finance, business, and marketing, her blog is a treasure trove of insights that offer unique perspectives on the latest trends and developments in the industry. Finding nirvana in food, fun, and travel, she is on a mission to counter the infodemic amidst digital chaos. 

LinkedIn Link: https://www.linkedin.com/in/ramitha-ramesh/