The Importance of Having an Annual Check in With Your Business Banker
A regular financial review with your commercial banker can help you find more efficient ways to bank, or plan for potential ups and downs in your organization.
The business world is constantly changing, and your company is, too. The economy, supply and demand, and other external factors outside of your control will always impact your business, no matter how prepared you may be.
Even if your business is successful, it’s still important to take time throughout the year to assess your financial situation and see where things could be improved. Sitting down with a business banker for an annual financial review can help you find more efficient ways to bank, run your cash management services, or plan for potential ups and downs in your organization.
Things to Discuss with Your Business Banker
When you work with a commercial banker or a business banker for your financial checkup, several key questions need to be addressed, including:
- How well is your business performing financially?
- Are you making a profit?
- Are you looking to accelerate your cash flow?
- Do you need a loan to meet your needs or expand your business?
- What procedures have you put in place to avoid fraud?
From here, the answers to these questions will guide your conversation and can help your business banker know which products or services to offer you that could support your business finances more effectively.
Are You Getting the Most Out of Your Business Checking Account?
The first area to look at is your bank account itself. Like personal accounts,
business checking accounts can change over time, and new perks or rewards can come up that you may not be taking advantage of.
You may use your business bank account more than your personal account, so it’s important to consider whether a business rewards account is a better choice for you.
At First National Bank and Trust, we have business accounts that give you
BaZing Business benefits. For business owners, this includes buyer’s protection & extended warranty
1,2, free tax filing
3, and cyber liability protection
2.
We also offer a
VIP business banking option, earning you interest on your business earnings. Our checking accounts for business owners aren’t one-size-fits-all, so talk to your banker about the different options to find the right one for you.
What Can You Do to Reduce Fraud Risks?
In 2023, the average amount lost by businesses as a result of cyber fraud was
$1.3 million.
Protect yourself and your business from crime by using malware and antivirus software, using strong passwords to accounts, and educating employees on the potential threat of cybercrime.
Check fraud is one of the biggest ways that businesses are targeted by cybercriminals, along with business emails being compromised due to employees clicking on malicious links in suspicious emails.
Your business bank account can help protect you against some of these fraud attempts by using tools like check positive pay that matches business checks against accounts and check numbers. Other benefits that your business banker can discuss include ransomware threat protection and business fraud protection options that come with some of our business checking accounts.
Can You Lower Your Loan Payments?
As a result of inflation, your business loan interest rate may have increased. As rates cool off, you should talk to your banker about refinancing options to lower your monthly payments.
Your banker can guide you on whether this is something you could benefit from over the next 9-12 months or whether keeping your current loan is a better option right now.
How Can Your Business Banker Help Improve Efficiencies?
Working with a local bank for
cash management and other banking services means you can focus on running your business more efficiently without worrying about administrative tasks.
Having a sound system in place for your day-to-day tasks, like remote depositing checks or an effective point-of-sale system, means that you aren’t wasting time on admin when you could be growing your company or making important business connections.
Tools like online Bill Pay and BizPay make paying your vendors safe, quick, and simple, while mobile banking allows you to check your balance and transfer funds whenever and wherever you are.
At First National Bank and Trust, our
business banking services are designed to make your daily life easier and give you back time to do the business tasks that matter most to you.
Have You Prepared for Your Business’s Future?
Having a business savings plan in place is one of the most important conversations you should have at your annual financial review.
Saving for an emergency is always important, especially when a business is on the line. No matter what industry you’re in, there’s always the potential for an unexpected problem—a sick animal that requires medical care in your
agriculture business, a leaking pipe in your stockroom ruining inventory, or a computer malfunction requiring you to upgrade your equipment all need financing somehow.
Think about where you see your business going: do you want to save just for emergencies, or are you hoping to expand and add staff or another location to your company? Create a
business plan and map out your goals, then talk with your business banker about the different options for
savings accounts and investments you could make for long-term growth.
Other Important Business Reviews
Along with an annual financial check-up, there are other reviews that are important to have at least once a year with your account.
Make sure all of your finances are in order as much as possible by reviewing your accounting books with your accountant. They’ll be able to suggest areas that could be cut regarding your expenses, along with what you might want to consider keeping for tax benefits. They’ll also be able to provide details about tax codes, particularly if anything changes relevant to your business. This will help you avoid any surprises come tax time.
Your IT department should always be keeping up with the latest information on cybersecurity and implementing any necessary updates to your system. Providing ongoing training on cybercrime to your employees may seem unnecessary but reminding them annually about what they should be looking for could help save your business from a malware or phishing attack.
If you’re planning to change anything about the structure of your business or considering estate planning, contact a lawyer or speak with your internal legal department. They’ll be able to advise you on the best next steps to take for any legal matters.
Set Up a Review with a Business Banker Today
At First National Bank and Trust, we’re always here to support your business. Make a plan to start or end the year with an annual review with one of our commercial bankers. We’ll be ready to review your
business finances and find ways to help you grow and succeed. Contact us today or visit one of our convenient
branch locations in Southern Wisconsin or Northern Illinois.
1 Subject to the terms and conditions detailed in the Guide to Benefits. 2 Insurance products are: NOT A DEPOSIT. NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. 3 Requires additional activation to begin.
BaZing or Gentreo are not a law firm or a substitute for a law firm or an attorney’s advice.