One of the top questions I get from people is, where should I do my banking? All too often, people choose a big bank because they feel safer. But are they really serving you well?

Keep reading to know what to look for when choosing a bank to do business with and why it matters.

Do I need an actual business bank account? Where should I do my business? Isn’t a bank just a bank?

These are a few common questions I get when talking with prospective clients who are ready to get serious about their business.

Having the right bank is one of the most undervalued pieces of business that easily gets overlooked. A bank is not just a bank (at least to me!). Having a great banker who you know, like and trust can really make your life easier. Remember last April when the PPP came out? Those who had a great relationship with their banker, and mostly the small banks, were some of the first to be able to get pushed through for the loan. It was the small businesses at the big banks that got lost in the sea of paperwork.

Having a great bank manager and team behind them can simplify your process of opening new accounts, making switches when better products come out, using your bank for merchant services saving you money, applying for loans, getting misc. charges removed, and knowing when products or programs come available that may help you or you qualify for. A great bank can play an integral role to making your financial life easier and even better.

So, where do you find these unicorn banks? Try your local community bank, local credit union and even the smaller ‘big banks’ in your area. Find somewhere you get personalized service, even if you never plan to step foot into a branch (I haven’t in years except to sign for new accounts when necessary).

The next thing you want to look into is their fee and minimum structure. You’re looking for a bank that has no fees (ahem, to use your own money) and no or very low minimums that need to be held in an account. What’s the point of having money in the bank if you can’t use it?

Remember, even a $5 monthly fee can start to add up. If you pay $5/account and are using 6 accounts to help you with cash flow and clarity, now you’re at $360/year in fees. What else would you do with $360? I can think of a lot of things that don’t include paying fees to use my money. A lot of banks will waive the fees if you meet certain minimum criteria or keep a specific daily or monthly balance in the bank. The smaller banks will typically have smaller criteria that’s easier for a small business to achieve, but there’s still a lot of great banks that also have zero minimums.

One of the last big questions I get is, “Can’t I just use a separate personal bank account for my business”? My answer is always the same….no, for the following reasons.

• First, it’s one of my main steps for profitability - if you want to be a business, you need to act like a business, including having a business specific bank account. When you use a personal account, you’re basically saying you’re going to keep playing small. Make transactions and decisions with the mindset of the business you want to be.

• Secondly, depending on the bank, they may have a strict policy against it. And if that’s the case, they can actually shut your account down. No one needs that to happen during a busy season, launch, sale or geez, anytime.

• It might be difficult to prove the transactions are business related for tax purposes. If you co-mingle at all, you’re really going to have a hard time with it.

• If you’re sending checks out, your business name won’t be on them. I’d put this against a little bit unprofessional as well as your credibility may be challenged.

When it comes to banking, the end point is that your bank does matter, and it’s important to put thought to your goals when you’re starting out. It can make the difference of ease along the way with your growth and having access to some of the best products, service and perks to keep your business thriving for years to come.

Kristen is a Certified Profit First Coach and Personal Finance Coach who specializes in working with small business owners & entrepreneurs in both their business and their personal lives to maximize their financial capabilities and future. To learn more about Profit First & business financial coaching options, click here.