Is This Your Situation: Are You Confused by Your Medical Practice’s Banking Needs?
Medical offices have vastly different needs than small businesses and individuals, and banks have developed a wide range of financial services and products to accommodate these needs. To maximize one of the most frequently used financial tools, you should consider several factors when choosing a checking account for your practice. Here are some of the most commonly asked questions about banking and medical practices.
Is a minimum balance required?
Some checking accounts require that you maintain a minimum balance to take advantage of free checking. If your account goes below the balance, you’ll pay additional fees each month. These fees might not look like much, but they will add up quickly if you’re not careful. If maintaining a minimum balance won’t be a problem for your practice, you can choose your bank based on other factors. But new offices and anyone who thinks there might be large balance fluctuations may want to consider free checking regardless of the minimum balance.
How quickly do you have access to the funds?
After you make a deposit, how quickly will that money be available? And, what options do you have for conducting your banking processes online? Online bill payments, integration with any back-office accounting software, and bank transfers may be regular transactions for you. Most banks offer easy online banking, but they may have hidden fees or restrictions.
How often will you make withdrawals?
Some checking accounts charge additional fees for cash withdrawals. Always look at the fine print. Do you plan to withdrawal funds regularly? A bank offering unlimited withdrawals may be a better choice for your practice.
How many deposits will you be making?
If you do anticipate a high volume of deposits, you may want to consider a commercial analysis account. These accounts accrue interest or credit with use. Although this amount may not be significant, it can help your practice’s cash flow. There may be other considerations, including hidden costs such as charges to print checks or to stop payments on checks. You may not know when or if you’ll need these services.
Choosing the best checking account for your medical office may not be top on your to-do list, but you should take time to consider it carefully. When you choose a bank that fits your financial needs, you’ve gained a trusted partner that can help your medical office succeed.
If you have other questions about your banking needs, give us a call and we will guide you.