Home
>
Small Business
>
Small Business Owners - Form a Relationship with Your Bank Manager

Small Business Owners - Form a Relationship with Your Bank Manager

It's just like a marriage

To expect a bank manager or officer to play such close attention to your account that he (or she) knows when you intend to deposit money and to know when to hold back a cheque is a hopeless dream.

He has neither the time nor the resources, and you can complain until your blue in the face but, in the end, you have the sole responsibility to manage your bank account.

All small business owners have a relationship with their bank and like a marriage, the relationship can be harmonious or stormy or somewhere in between. You have to work at having a harmonious and happy marriage. You have to take into account the feelings and wishes of your partner before taking a position or making a decision. So too with banks.

Learning how to develop a skill in handling your bank is only one skill the small business operator must learn, but it may be the most important because it cannot be entirely delegated to your accountant.

Communication is everything

If you write a cheque that may take your balance over the limit let your bank manager know or better still let your bank know a month in advance.

After all, you prepared a projected cash flow at the beginning of the year, didn't you? And you are monitoring and adjusting it month by month, aren't you?

If you haven't prepared a projected cash flow statement to give you an idea of how much money you will need for the year then you are really managing by the 'seat of your pants' and anyone who manages 'by the seat of their pants' will end up with the 'seat out of their pants!'

Make your banker your friend

If the period of your shortness of funds is an extended one then talk to your bank about a higher overdraft or an increase in your present loan. To get a loan from your bank it's essential to have all the information which answers any concerns the bank might have about your ability to repay the loan.

Once you get your money keep your bank informed about how your business is travelling in both good times and bad.

It's not a one-way street

Your relationship is not a one-way street and you should expect your bank to provide you with the standard of service which you expect from all the firms with which you deal.

8 points for a better relationship

The Australian Society of CPA's has provided an 8 point checklist for a better banking relationship.

Point 1

Can you easily contact your manager when you need to?

Point 2

Do you have a good working relationship with your bank manager and does he or she understand your business and the needs of that business.

Point 3

Are you confident in the ability of your bank manager and his support staff? In particular, can you rely on the financial advice given by your bank manager and does the staff have a good working knowledge of the products and services relevant to your business.

Point 4

How soon can you get appointments to discuss important financial agreements? Unacceptable delays must be discussed with your bank. Are you satisfied with the location of discussions about business matters, whether it be at your premises or the bank's?

Point 5

How long does it take to receive a response on the application for a loan facility. Is this time acceptable?

Point 6

Does the bank keep you fully informed of the charges for business current accounts, loans and overdrafts with statements of account provided regularly?

Point 7

How frequently are errors made and if there are any, how are they handled?

Point 8

Are you satisfied with the service and attitude of the branch staff?

Finally

Finally, and most importantly, review periodically the service which your business receives from the branch and determine whether the bank is providing good value for your expense. Remember - ask yourself if you would recommend the branch where your business account is kept to someone else who is considering opening a business bank account.

Remember that if you need any help we are only an e-mail away - Contact Kelvyn Peters CPA & Associates. If you just need a little help, you will find it at http://profitstrategies4business.com

About the Author

Kelvyn Peters is one of Australia's longest serving Tax Agents. Kelvyn was registered in February 1962.

He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and advised the hospitality industry for many years.

His speciality is moving in to rescue ailing restaurants.

Kelvyn Peters CPA has spent over 20 years experimenting and researching methods to help small business in meaningful ways that are affordable.

Kelvyn and his associates have perfected it with their local clients now they are going global.

http://profitstrategies4business.com

housekeepers near Park Ridge ..

In The News:

Costco has expanded into EV infrastructure with new ultra-fast charging stations that can charge most electric vehicles to 80% in 20-60 minutes while shoppers browse the warehouse.

The new Gemini Robotics On-Device AI allows robots to perform complex tasks without internet, offering enhanced privacy, reliability and adaptability for real-world use.

Protect yourself from Amazon phishing scams by spotting red flags like suspicious sender addresses and spelling errors while using Amazon's Message Center to verify communications.

GAC Group's new Govy AirCab flying car combines lightweight design with advanced safety systems and smart cabin technology to revolutionize city travel with an 18.6-mile range.

The Berkeley Humanoid Light (BHL) is a lightweight, open source humanoid robot that anyone can build using 3D-printed parts and off-the-shelf components.

Meta’s new AI chatbot is getting personal, and it might be sharing more than you realize.

A new threat targets both Android and iPhone users: SparkKitty, a powerful mobile malware strain that scans private photos to steal cryptocurrency recovery phrases and other sensitive data.

Thanks to a team at the University of California, Davis, there's a new brain-computer interface (BCI) system that's opening up real-time, natural conversation for people who can't speak.

Privacy risks are hiding in plain sight, as your personal data is likely being collected, tracked, and sold without your knowledge.

VenHub, a fully autonomous, AI-powered smart store just opened at the LAX/Metro Transit Center in Los Angeles.

A woman's Facebook account takeover reveals dangerous social engineering tactics and provides lessons on recovery, avoiding scams and enacting stronger security measures.

Shanghai engineers are using 432 walking robots to relocate a complex, preserving Shikumen architecture while creating space for a modern underground hub and cultural center.

Major healthcare data analytics firm Episource had a cybersecurity incident exposing 5 million patients' medical records and personal information in recent breach.

A new sophisticated PayPal scam sends legitimate-looking emails from official PayPal addresses, using phone numbers instead of links to convince victims to download remote access tools.

Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.

The innovative Kara Pod device extracts moisture from air to create mineral-rich water and brew coffee, featuring UV sterilization and compatibility with Nespresso pods.

Gov. Hochul unveiled New York's nuclear power plant project to power a million homes, which faces permit challenges while promising jobs and a cleaner energy future.

SAFE introduces Aerie, an underground luxury bunker combining high-end living with advanced security, wellness amenities and interactive walls simulating panoramic views.

A Facebook scammer posing as Elon Musk tricked a victim with promises of a Tesla and $250,000, requesting gift cards that become untraceable once the codes are shared.

Experience hands-free golfing with the Robera Neo smart caddie that uses AI to follow you, navigate obstacles and carry your clubs with GPS course mapping.

Cybersecurity alert: 16 billion passwords exposed in massive credential database affecting major platforms. Protect your accounts with password managers

The innovative BeBot robot uses electric power to remove pollution from shorelines, covering 20-30 times more area than manual collection while preserving wildlife.

A new ClickFix campaign targets macOS users with fake Spectrum support sites, tricking victims with CAPTCHA failures to paste commands that install information-stealing malware.

AI-powered autonomous trucks from Plus Automation are being tested across the U.S., Europe and Asia to solve logistics challenges while facing regulatory hurdles and labor concerns.

Your health information might feel private and secure with your doctor, but the reality is far more complicated. Data brokers collect a wide range of sensitive health data, from diagnoses and prescription details to personal identifiers, and sell this data to marketers, insurers, and other third parties.