What is the best bank to use for business checking for a new Tax preparation business?
Question by YoursTruly: What is the best bank to use for business checking for a new Tax preparation business?
Any suggestions on the best bank to utilize??
Also what are the best ways to collect preparation fees?
Best answer:
Answer by cainvest1
Depends on where you are located. Choose one that is convenient to you that has a reputation for servicing small business accounts. Often local banks do a better job than larger ones.
However, you likely also need to offer credit card services to your customers to pay their fees. Accepting cash and checks will be better for your margins, but people are known to bounce checks. If you are a member of Costco you can check into their small business merchant accounts for credit cards. Intuit also offers programs that are tied to taxes to offer your customers reloadable debit cards for refunds.
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You can try any of the major banks and see what type of deals they have for business checking and savings accounts. (I use Wells Fargo but I’m sure other banks have good deals). You can also ask them to walk you through opening a merchant account so you can accept credit cards. Be sure to shop the banks Merchant account fees/ structure with another company that offers merchant accounts.
1 thing to note- When I opened my merchant account a few years ago, they kept hitting me with hidden fees and a yearly $ 100-125 compliance fee (this was a total shakedown by the way). You shouldn’t pay any more than $ 40-45 in mandatory monthly fees and the percentage of sales should be less than 3% preferably around 2.3 – 2.5% or less. Hope this helps and good luck!
If you repost in taxes, united states, a few top contributors in that category run their own prep business (I don’t sorry) and can probably give you more info than anyone in this category regarding banks and the products they can offer for you/your clients (like RALs, taking prep fees out of refund, etc).
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