Open a Bank Account – Entrepreneur opening a business needs to open a bank account. Because separating personal bank account from business account is good accounting practice. This will enable to monitor all business-related disbursements as against personal expenses.
Although opening a bank account is easy, determining the right bank requires some effort. You need to shop around and compare bank services. Though, there are many options and banking services available today that can help manage your cash efficiently. They range from basic savings accounts to investment instruments, payroll processing, accounts payable processing, online transactions, and even insurance services that can support your business operation.
In looking for a good bank, your need to find out which bank actually meets the banking requirements of your business. The right bank is one that secure the best will help you deal and avoid hassles and unnecessary expenses.
In choosing a bank, ask yourself the following questions:
• Does your bank of choice provide online banking that will enable you to conveniently pay your bills, transfer money in and out of your account, and make other money banking transactions?
• Can you easily make online download of your bank reports and records of banking transactions of your business bookkeeping needs?
• How many branches does the bank have and where they are?
• Are these proximate enough to where you do business?
Once you selected your bank, analyze ahead of time the things you need in terms of services as well as such things as bank charges and penalties. You can research on bank’s website and get information about the types of checking and savings accounts that they offer, their types of loans and interest rates, and their other special services that you may find useful for your business.
Here is the top ten banks operating in the Philippines with websites:
3. Bank of the Philippines Islands
4. Land Bank of the Philippines
5. Development Bank of the Philippines
6. Philippine National Bank
7. Rizal Commercial Bank Corp.
8. Union Bank of the Philippines
9. China Bank
10. Citi Bank
After doing online research on your prospective banks on the service, safety, and convenience aspects, you may then visit them personally before making your final assessment. You can check if the tellers are friendly and professional enough.
Once you decided on which bank to go and once you have understood their requirements, you must then prepare the necessary documents needed for opening a bank account. If you are a business owner operating a single proprietor and already has a trade name, the process is simple. You just need to submit to the bank your Department of Trade and Industry (DTI) registration and present valid identification cards, your tax identification number (TIN), and ID picture of the required size and color. Some banks will ask for the latest business permit issued to you by your local government.
If the business to be incorporated, it need more documentation and follow a longer set of procedures. You need to appoint one of your incorporators as the treasurer and he or she can then open an account with a bank. Bank requires the submission of the SEC registration papers of your business. And the initial amount of deposit must be in accordance with Section 13 Title II of the Corporation Code of the Philippines.
Source: Henry Ong (Entrepreneur October, 2007)