If your business account has high fees, low limits, or no business products, it's time to look for a new one.
Move your business to the new account
Several banks have "switch kits" that can help you move your business to your new account. Some of the helpful reminders on these lists are to switch recurring payments and let your accountant know.
Pay attention to the timing, especially if you are switching payroll systems, so that payments don't get held up.
- Most of the time, you'll need to update the following transactions:
- Employees' paychecks and direct deposits.
- Paying vendors, software companies, etc.
- Payments to business advisors or consultants. These people may also need to know about the change if they are going to help you run your business.
- Customers can get automatic bills or transfers.
Your new bank may be able to give you an account transfer letter that you can send to business partners to let them know you've changed accounts and give them information about your new bank account.
Close your old bank account for your business
Follow the steps your old bank gives you to close your account once your new business bank account is set up and working well.
Give any payments that are still pending time to clear before you shut things down for good.
Get a clear answer from your bank about how it handles payments sent to your account after it has been closed. Transfer out any remaining funds (in case vendors send payment to your old account by mistake).
How to switch checking accounts for your business within the same bank
Switching to a new bank is more complicated than switching to a new account at the same bank. Just talk to your business banker about making the change. You'll keep the same account number, so you won't have to tell all of your business partners about the change.