![\"child_business_work\"](\"https:\/\/www.chcfinc.org\/clearinghouse\/wp-content\/uploads\/2015\/11\/piggybank-n-girl-2.jpg\")
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Savings: Money set aside today for use at a later date.<\/p>\n
The family childcare sector is unpredictable, so it is important to be prepared. Savings can help a provider keep current on bills and weather financial setbacks such as a decrease in the number of children enrolled in the program, an unexpected expense, an illness or other.<\/p>\n
Savings can also help a provider achieve his\/her short-term or long-term goals (i.e. schooling, vacation, a house, renovation or expansion of your business, retirement, etc.).<\/p>\n
In addition, savings can improve a provider\u2019s ability to borrow money, that is, savings can help him\/her obtain access to credit.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container” padding_top=”” padding_bottom=””][vc_column][vc_tta_accordion active_section=”0″ collapsible_all=”true”][vc_tta_section title=”Choosing a Bank for a Small Business” tab_id=”1448143034521-96c2f080-8079″][vc_column_text]As a small business owner, every decision a provider makes affects the bottom line. Choosing the right bank for his\/her business accounts is no exception. Here are a few key questions to ask before selecting a new bank.<\/p>\n
As a new business owner, the distinction between these two types of accounts can be confusing.<\/p>\n
These factors mean that small business owners have a lot to lose \u2013 or gain \u2013 by selecting a particular account. Ideally, a new business checking account should closely fit your needs and banking habits to reduce the impact of fees.<\/span><\/p>\n Transaction fees, cash deposit limits and other charges can add up in a major way and may be tough to predict.\u00a0 When choosing a bank, keep in mind:<\/span><\/p>\n Just as with personal bank accounts, there are a variety of services and tech solutions to help make banking simpler for both parties.<\/span><\/p>\n Online banking (and more recently mobile banking) has exploded in popularity over the past few years. These two services are highly important when establishing a new banking relationship since they will allow a business owner to keep track of his\/her business account balances and transactions at all times, and from any location.<\/p>\n An even more valuable tool for business owners is the ability to make deposits from home or office. Though it is less widely available, many banks and credit unions offer remote check deposits via a mobile app or computer scanner. If a business deals frequently in paper checks, this type of service could cut out countless trips to the bank.\u00a0 On a similar note, online Bill Pay services help to reduce paper waste and automate recurring payments.<\/span><\/p>\n To be clear, these features aren\u2019t necessarily essential for all business owners. If a company highly values interpersonal customer service, then a smaller bank with nearby branches is the option \u2013 mobile app or not.\u00a0 However, if a business owner travels a lot for business, or runs a tech-heavy operation, the convenience of automatic deposits and transactions on the go will boost the utility of such self-service options.<\/p>\n Banks and credit unions may offer additional services to cater to business owners. Through key partnerships, some institutions offer payroll and employee benefit services, merchant card processing solutions, and even tax preparation assistance at a discount when linked to a business bank account. Though this shouldn\u2019t stop a business owner from comparison-shopping for the best services at the lowest cost, partnering with his\/her bank may provide a smoother interaction.<\/p>\n Small business owners will find it easier to secure financing from a local bank, typically at a lower interest rate than national chains. Smaller banks and credit unions want the business and will show flexibility if there is a good working relationship.<\/p>\n Many resources like the U.S. Small Business Administration\u2019s website (<\/span>SBA.gov<\/span><\/a>) help small business owners connect with \u201cother small business owners and get advice on starting, growing and managing your business.\u201d\u00a0<\/span>The website offers blogs and posts concerned with everything from offering advice on starting a business, to loans and grants, filing and paying taxes, and even advertising.\u00a0 Having knowledge of the business and bouncing ideas off others is a great way to develop a strong business plan and identify which financial direction is best.<\/p>\n Gower, J. (2013, August 9). “How Do I Find the Right Bank for My Small Business?” – NerdWallet. Retrieved November 20, 2015, from\u00a0<\/span>http:\/\/www.nerdwallet.com\/blog\/banking\/choose-a-bank-for-your-small-business\/<\/span><\/a><\/p>\n Resource and links:<\/span><\/p>\n Choosing the Right Bank for Your Small Business<\/b><\/a>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Opening a Small Business Account Online” tab_id=”1448143260482-8dda9341-32f4″][vc_column_text]Opening a business bank account online can be an easy and painless process when all the necessary documentation is in place.<\/p>\n First, it is important to realize there are several factors that can prohibit one from opening a business bank account on the Internet.<\/p>\n For example, if a company provides money services, including check cashing, issuing money orders, issuing store value cards, exchanging currency, or wiring funds in exchange for a fee, banks will not allow the opening of an online account. A business owner will need to go to the branch personally to open an account.<\/p>\n In addition, if a business falls into one of the following industries, then the owner will need to open an account in person rather than online<\/p>\n So, what type of documentation is required to open a business bank account online? Depending on the structure of the business, the following documents will be required to open an account online.<\/p>\n A business owner will be prompted to select the type of bank account preferred. Some online banks offer a variety of options, from business economy checking to full analysis business checking.<\/p>\n If a business owner is given the opportunity, he\/she should select the business debit card option and review all the additional services that can be added to the account.<\/p>\n Once a business bank account is successfully established, the next step is to establish a favorable bank rating for the company.<\/p>\n Carbajo, M. (2012, March 21). \u201cHow to Open a Small Business Bank Account Online\u201d\u00a0| The U.S. Small Business Administration | SBA.gov. Retrieved November 20, 2015, from\u00a0<\/span>https:\/\/www.sba.gov\/blogs\/how-open-small-business-bank-account-online<\/span><\/a>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”CFPB Guide: Opening a Bank or Credit Union Account” tab_id=”1451330589916-30f819e4-8571″][vc_column_text]\n Bank statements usually have seven parts:<\/p>\n A financial institution usually mails a statement once a month or quarter, depending on its banking cycle. If a business owner has signed up for online or mobile banking, he\/she might also be able to access the statement from a computer or smartphone. Some free checking accounts only offer online access to statements.<\/p>\n If an account is viewed online, it\u2019s still smart to print out copies in order to have them accessible when away from a computer or phone.<\/p>\n <\/p>\n It is important to regularly review bank statements to ensure everything is accurate. \u201cReconciling your account\u201d \u2014 or matching up a business owner\u2019s record of deposits, withdrawals, interest and fees with the information on his\/her bank statement \u2014 can help him\/her catch any mistakes or even fraud. It can also help avoid overdraft fees if the bank statement shows less money than what is believed to be available.<\/p>\n When looking at bank records, a business owner should remember to pay attention to the statement\u2019s end date, since transactions made after that date will appear on the next statement.<\/p>\n When an account is reconciled, a business owner might see charges on the bank statement he\/she may not remember making. Or, he\/she might see transaction amounts that may not be accurate. For example, he\/she may remember paying $24 at a restaurant but it shows up on the bank statement as $42.<\/p>\n It\u2019s worth taking a few minutes to find the reason for the discrepancy. It may be that a purchase was made and was forgotten, or perhaps the wrong purchase amount was recorded in a software app or check records.<\/p>\n If there is a mistake, the business owner will want to report it to his\/her bank or credit union. He\/she will usually have 60 days from the statement date to dispute any errors.<\/p>\n After reviewing a paper statement, it should be filed in a safe place and kept for at least a year. The statement will need to be referred to when it\u2019s time to file a tax return. In adddition, if a business owner plans to refinance or buy a home in the near future, potential lenders might want to see several bank statements when he\/she applies for a loan. Bank statements are also accessible online as needed.<\/p>\n Bank statements are a great tool to help business owners track their money and stay on the same page as their bank or credit union.<\/p>\n Resource and links:<\/span><\/p>\n Burnette, M. (2015, October 30). What Is a Bank Statement? – NerdWalle<\/span><\/a>t.<\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Credit Unions vs. Banks” tab_id=”1451331229254-aac8352a-8308″][vc_column_text]The range of options for consumers seeking financial services has broadened significantly in recent years, with online-only banks, robo-advisers and crowd funding taking most of the headlines.<\/p>\n But one of the oldest and most basic features of the landscape of banking institutions is often poorly understood, namely, the difference between credit unions and banks.<\/p>\n While the two kinds of institutions provide many similar consumer products and services, their delivery of products and services can differ significantly.<\/p>\n Here\u2019s how credit unions and banks compare across a variety of criteria that may be important to the small business owner:<\/p>\n\n
How will the small business owner make most transactions?<\/strong><\/h3>\n
Will a small business owner need other business services?<\/strong><\/h3>\n
What are the business\u2019s borrowing needs?<\/strong><\/h3>\n
Other business resources<\/b><\/h3>\n
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Sole Proprietorship<\/b><\/h3>\n
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General Partnership<\/b><\/h3>\n
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Limited Partnership<\/b><\/h3>\n
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Limited Liability Partnership<\/b><\/h3>\n
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Corporation<\/b><\/h3>\n
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Corporation (Publicly Traded)<\/b><\/h3>\n
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Professional Corporation<\/b><\/h3>\n
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Limited Liability Company<\/b><\/h3>\n
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Unincorporated Association<\/b><\/h3>\n
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GDE Error: Error retrieving file - if necessary turn off error checking (404:Not Found)<\/div>\n[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”CFPB Guide: Ways to Pay Your Bills” tab_id=”1451330678816-ff8ff2f8-7cde”][vc_column_text]\nGDE Error: Error retrieving file - if necessary turn off error checking (404:Not Found)<\/div>\n[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”CFPB Guide: Selecting Financial Products and Services” tab_id=”1451330928783-002118f2-e405″][vc_column_text]\nGDE Error: Error retrieving file - if necessary turn off error checking (404:Not Found)<\/div>\n[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”What is a Bank Statement?” tab_id=”1451330978229-80c83beb-2468″][vc_column_text]Bank statements can help business owners track finances, catch mistakes and understand spending habits. It\u2019s a good idea to review them on a regular basis.<\/p>\n\n
Reconcile the account<\/b><\/h3>\n
Correct mistakes<\/b><\/h3>\n
Keep records<\/b><\/h3>\n
At-a-glance comparison<\/h3>\n