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How Many Bank Accounts Do Businesses Need?

If you’re a business owner, you’ve likely been in this dilemma for some time. It can be confusing to decide how many bank accounts your business should have.

If you’re a business owner, you’ve likely been in this dilemma for some time. It can be confusing to decide how many bank accounts your business should have. 

To answer that question, there are a few things to consider, such as the type of business you’re running, your cash flow needs, and the type of accounts you need to open. While checking and savings accounts are the two most common types of business bank accounts, other specialized options are available depending on your needs.

Taking advantage of the right accounts for your business can help you manage cash flow, separate expenses, and maximize investments. But how many bank accounts do businesses really need? We’re here to answer that question.

Business Bank Accounts

How many bank accounts do you need?

The answer to this question varies depending on the size and type of business you’re running. Regardless, most companies should have at least two bank accounts – a checking account and a savings account. 

A checking account is used for day-to-day expenses such as payroll, taxes, bills, and other payments. A savings account is typically used to keep cash reserves in case of emergencies or unplanned expenses. 

For larger businesses with more complex financial needs, there are other types of accounts that may be beneficial. For example, a business credit card might be necessary to manage expenses and track spending more efficiently. 

A merchant account is recommended for businesses that accept credit cards or need to process payments online. And if you’re looking to invest funds, consider opening up an investment account with a financial advisor or brokerage firm.

Can you have multiple accounts?

Absolutely. In fact, having multiple bank accounts can help you better manage your business finances by keeping separate accounts for different purposes. Having additional accounts allows you to track expenses more accurately and gives you greater control over where your funds are allocated. 

If you have a checking account for day-to-day expenses and a savings account for emergencies or investments, it’s easier to keep an eye on both at the same time. It also prevents any confusion about where money is coming from and going to.

Should you have multiple accounts?

If you’re still on the fence about whether you should open more than just two basic accounts, we’ve put together a list of questions to help you decide.

  • What are your cash flow needs? If you’re expecting high levels of income and/or large payments, it might be useful to open different accounts for payrolls, taxes and other payments. This will help prevent any issues with overdrafts or late payments. 

  • Do you want to earn interest? If you’re looking to get the most out of your money, then having a savings account is a great way to earn interest on any leftover funds after covering expenses. Most checking accounts don’t offer interest!

  • Do you need to manage multiple currencies? If you’re doing business in different countries, having a multi-currency account can help simplify the process of transferring money between currencies.

  • Do you run an LLC? If you’re running an LLC, a separate business account might be required to keep your personal and business finances separate.

  • Are you a sole trader? Check why you should have a business bank account.

Read more about the benefits and advantages of business bank accounts.

Narvi Payments

Your All-In-One Business Account: Narvi Pay

If you’re looking for an all-in-one business account, then Narvi Pay may be the answer. We’re an online banking solution based in Finland that combines minimalist Finnish and Nordic concepts and sophisticated fintech.

With Narvi Pay, you can open multiple accounts and manage them all in one place. You also have access to a powerful team of seasoned professionals in the banking and fintech industries. And what’s more, our pricing is transparent.

For companies that do business across borders, we make it easy with dedicated IBAN accounts, global SWIFT wire transfers to and from 100+ countries, and instant SEPA payments.

Ready to benefit your business with our sleek new approach to banking? Sign up today and we’ll help you along the way.