3 Signs You Need a Better Small Business Checking Account

If any of these things apply to you, it's time to fire that old business checking account.

Running your small business probably keeps you pretty busy. Between organizing all your paperwork, ordering supplies, and paying bills, it can be tough to focus on the tasks that actually bring money through the door sometimes. So the last thing you need is even more headaches when it comes to storing and accessing that hard-earned cash.

Yet this happens to a lot of small business owners who choose the wrong small business checking account. Here are three signs you could really use a change.

1. It charges a lot of fees

Some business checking accounts charge absurd fees. You'll pay a monthly maintenance fee to own the account, another fee if you have too many transactions in a month, and another one if you try to deposit too much cash. Then, there are more obscure fees for things like outgoing wire transfers or overdrafts.

All these costs can eat into your profits, but you may not have to pay them. The rise of online banking has brought a wave of fee-free accounts and one of these might suit you better if you're struggling to avoid charges with your current account.

That said, there's no reason to abandon an account that charges maintenance fees or per-transaction fees if those aren't affecting you. Many banks enable customers to waive their maintenance fees by maintaining a certain minimum balance or meeting other requirements. If you're able to do this, its fees may not bother you.

2. You're hitting your transaction limits

As discussed above, some business checking accounts only allow account holders a certain number of monthly transactions. A transaction is defined as a deposit, withdrawal, or transfer of funds from one account to another. If you exceed the transaction limit for your account, you could pay a fee for each additional transaction.

In addition, some banks specifically limit the number of cash deposits you can make. This can be restrictive to businesses whose customers often pay in cash. Depositing more cash than the account's limit could also result in extra charges.

If you're running into your account's transaction limits pretty routinely, that's a sign that it's time to get a new small business checking account. You could look for one that has higher transaction limits or even find one that has no transaction limits at all.

3. Its customer service is terrible

You may not have to speak to a bank representative very often, but you want them to be there when you need them. If your bank has limited customer support hours and its online and mobile account management tools frequently have issues, this could make it challenging for you to access your funds when you need to.

You can compare its customer service to some other banks by checking customer reviews or even putting in a call with a few simple questions to see how they respond. Pay attention to the various methods of support available to you, like in-person, phone, and live chat support. Make sure there's at least one and ideally more than one that you're comfortable using to get help when you need it.

There's no good reason to stick it out with a small business checking account that's not suiting your needs. If yours has any of the red flags mentioned above, you may want to start hunting for a new one. Take your time and compare a few options to ensure you find the one that's best for your business' needs.