Many physicians choose to work for an employer, receiving benefits and regular paychecks like most other W-2 employees. Other doctors, though, are the owners of their own jobs, meaning they own or co-own a private practice that might include other partners or employees.
If the latter sounds like you, you probably need to have a business checking account for your practice. With so many business checking accounts out there, it can be hard to find the right one for you. We’ll cover why business checking accounts are important and some of the top options on the market.
Why You Need a Business Checking Account
Just like individuals have checking accounts, businesses also need a place to store their money for quick and easy access. Business checking accounts let companies keep their money safe while offering benefits like check-writing services and debit cards to make it easy to get to their cash.
If you have your own practice, there are a number of reasons it needs its own business checking account.
For one, a business checking account will make dealing with your taxes much easier. You won’t have to worry about separating personal expenses and business expenses when looking at bank statements because you’ll only use the business account for business needs and your personal account for personal needs. Keeping your personal and business funds separate is also key to maintaining the protections offered by different business structures, such as limited liability companies (LLCs).
Business checking accounts can also come with benefits or services that make running your business easier—such as access to business lending, the ability to authorize employees to make certain purchases, or invoicing and payroll tools.
More information here:
10 Reasons You Should Own A Business
What to Look for in a Business Checking Account
Not all business checking accounts are made equal. They all come with different features and benefits. While the specific features you’ll be looking for can depend on your practice’s size and needs, some keys to look for include:
- FDIC (or NCUA for credit unions) insurance
- Low or no maintenance fees
- Low fees for services you’ll use, like cash deposits or transfers
- Low minimum balance requirements
- Invoicing tools
- Payroll services
- Integrations with accounting programs
- Mobile banking
- Access to other business banking services, such as loans
The Top Business Checking Accounts
Whether you’re looking to open your first business checking account or you want to move to a new bank, these are a few of the best business checking accounts available.
Bluevine
Bluevine is an online bank that focuses on businesses, making it a good option for physicians who are tech-savvy and want to keep their finances digital.
It offers several great perks and features, including:
- No minimum balance
- Unlimited transactions
- No monthly fees or overdraft fees
- FDIC insurance up to $3 million, far beyond the standard $250,000
You can also earn interest on your checking balance, which is an unusual perk that can help you keep your money working for you. To earn interest, you must either spend at least $500 per month with your linked debit card or Bluevine cash back credit card or get $2,500 in deposits each month, which should be doable for most practices.
Other account benefits include payment and invoicing tools, automated accounts payable services, the ability to create subaccounts for easier tracking of your money, and secure account access for employees.
Bluevine also offers business loans and lines of credit if you’re looking to finance an expansion of your practice.
American Express
Though American Express is best-known for its credit cards, it also offers some business banking services, including a business checking account. The account has no monthly fees or minimum balance requirements and also pays interest on your account’s balance, up to $500,000.
One noteworthy perk of the account is that American Express offers Membership Rewards points when you use your business debit card at a rate of 1 point for each $2 spent. There are also occasional signup bonuses available, giving you bonus points when you open an account and complete a few qualifying activities.
Of course, American Express also offers a line of business credit cards, so if you’re looking for a simple business checking account and a strong selection of credit cards, American Express is a good fit.
Chase
Chase is a major multinational bank that has a number of different business bank accounts to choose from, depending on your practice’s size and needs.
One major draw of Chase is that it is a brick-and-mortar bank. If you like walking into a physical location to handle your banking, Chase is likely a good fit.
The three tiers of business checking accounts are:
- Complete Banking ($15 fee waived with $2,000 minimum balance or other activities)
- Performance Checking ($40 fee waived with $35,000 combined average beginning day balance)
- Platinum Checking ($95 waived with a $100,000 combined average beginning day balance)
Chase offers just about every service you could want from a business bank—including loans and credit cards, invoicing tools, employee account access, and cash deposits or withdrawals at branches and ATMs.
Novo
Novo is another online bank that focuses on small businesses. It keeps things simple, with an easy-to-use online dashboard, no minimum balance requirements, and no monthly fees.
One of Novo’s big draws is that it offers several discounts on popular business services, including:
- Microsoft advertising
- Quickbooks
- Slack
- TurboTax
- Dropbox
Novo also offers a number of integrations with popular accounting and payment tools, free invoicing and budgeting services, and access to AI-powered bookkeeping assistance.
Business checking customers can also apply for Novo’s business credit card, which offers up to 2% cash back on purchases and a line of credit up to $10,000 that can help smooth out your practice’s cash flow.
More information here:
The Bottom Line
If you have your own practice, you need to have a business checking account to manage its finances. Whether you’re working alone or have employees that you need to delegate financial responsibility to, there’s a business checking account out there for you. Take the time to shop around and compare your options, and you’ll find a business bank that can make handling your business’s money a breeze.
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