5 Benefits of Online Banking

Online banking has been around for a generation. Still, some small businesses balk at adopting it because of security concerns. Considering the online breaches that have occurred, that’s understandable.

But think of it this way, many companies that sell online services hold up the financial industry as the gold standard for data safety, claiming they offer “bank-level security.” There are far more reasons to do your banking online than not. Here are five of them.

 

1. You know almost as quickly as the bank does when payments clear and deposits are recorded.

Online banking makes your financial information available 24/7/365. You can always call your bank and ask if a specific transaction has cleared, but do you want to do that a dozen or more times every day? If you’re accessing your data through an accounting application, categorization and reconciliation are much simpler, too.

 

2. You can catch errors faster.

If something is amiss with your bank accounts, do you really want to wait a month until your statement arrives to find out? If you made a big mistake with a check; a deposit didn’t get credited; or an unauthorized person is accessing your accounts; you risk overdrafts, service charges, and trust issues with customers and suppliers.

 

3. You’ll be able to dispatch bill payments directly from your online bank account.

This makes bill-pay not only easier, but faster, too. Major—and some minor—utility companies, retailers, and service providers accept electronic payments. So, some of your bills can be paid within a day or two. Your bank will send a paper check to those that don’t.

 

4. You’ll save money.

Anything that saves time saves money; it frees up hours that you can spend on critical managerial tasks. No more heading to the bank just to transfer funds, for example. Some banks charge a nominal fee for access and bill-pay, but you’ll more than make that up in the savings on postage, printer-friendly paper checks, and gas for bank runs.

 

5. Your business will actually be safer.

Not safe in the sense that a data hack is impossible; that’s a risk every time we share personal information online. But, online banking provides different kinds of safety:

• You can request alerts whenever specific account activity occurs, which will help you prevent fraud.
• You’re less likely to overdraw accounts and pay bills late.
• You’ll be able to do short-term planning with more confidence.

 

There’s another noteworthy benefit. If you’re doing your banking online—especially if it’s integrated with accounting software—it’s much easier and more economical for a financial professional to monitor your cash flow, create specialized reports, and assist with your financial information.