Home
>
Small Business
>
Small Business Owners - Form a Relationship with Your Bank Manager

Small Business Owners - Form a Relationship with Your Bank Manager

It's just like a marriage

To expect a bank manager or officer to play such close attention to your account that he (or she) knows when you intend to deposit money and to know when to hold back a cheque is a hopeless dream.

He has neither the time nor the resources, and you can complain until your blue in the face but, in the end, you have the sole responsibility to manage your bank account.

All small business owners have a relationship with their bank and like a marriage, the relationship can be harmonious or stormy or somewhere in between. You have to work at having a harmonious and happy marriage. You have to take into account the feelings and wishes of your partner before taking a position or making a decision. So too with banks.

Learning how to develop a skill in handling your bank is only one skill the small business operator must learn, but it may be the most important because it cannot be entirely delegated to your accountant.

Communication is everything

If you write a cheque that may take your balance over the limit let your bank manager know or better still let your bank know a month in advance.

After all, you prepared a projected cash flow at the beginning of the year, didn't you? And you are monitoring and adjusting it month by month, aren't you?

If you haven't prepared a projected cash flow statement to give you an idea of how much money you will need for the year then you are really managing by the 'seat of your pants' and anyone who manages 'by the seat of their pants' will end up with the 'seat out of their pants!'

Make your banker your friend

If the period of your shortness of funds is an extended one then talk to your bank about a higher overdraft or an increase in your present loan. To get a loan from your bank it's essential to have all the information which answers any concerns the bank might have about your ability to repay the loan.

Once you get your money keep your bank informed about how your business is travelling in both good times and bad.

It's not a one-way street

Your relationship is not a one-way street and you should expect your bank to provide you with the standard of service which you expect from all the firms with which you deal.

8 points for a better relationship

The Australian Society of CPA's has provided an 8 point checklist for a better banking relationship.

Point 1

Can you easily contact your manager when you need to?

Point 2

Do you have a good working relationship with your bank manager and does he or she understand your business and the needs of that business.

Point 3

Are you confident in the ability of your bank manager and his support staff? In particular, can you rely on the financial advice given by your bank manager and does the staff have a good working knowledge of the products and services relevant to your business.

Point 4

How soon can you get appointments to discuss important financial agreements? Unacceptable delays must be discussed with your bank. Are you satisfied with the location of discussions about business matters, whether it be at your premises or the bank's?

Point 5

How long does it take to receive a response on the application for a loan facility. Is this time acceptable?

Point 6

Does the bank keep you fully informed of the charges for business current accounts, loans and overdrafts with statements of account provided regularly?

Point 7

How frequently are errors made and if there are any, how are they handled?

Point 8

Are you satisfied with the service and attitude of the branch staff?

Finally

Finally, and most importantly, review periodically the service which your business receives from the branch and determine whether the bank is providing good value for your expense. Remember - ask yourself if you would recommend the branch where your business account is kept to someone else who is considering opening a business bank account.

Remember that if you need any help we are only an e-mail away - Contact Kelvyn Peters CPA & Associates. If you just need a little help, you will find it at http://profitstrategies4business.com

About the Author

Kelvyn Peters is one of Australia's longest serving Tax Agents. Kelvyn was registered in February 1962.

He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and advised the hospitality industry for many years.

His speciality is moving in to rescue ailing restaurants.

Kelvyn Peters CPA has spent over 20 years experimenting and researching methods to help small business in meaningful ways that are affordable.

Kelvyn and his associates have perfected it with their local clients now they are going global.

http://profitstrategies4business.com

no-contract cleaning service Des Plaines ..

In The News:

Phishing scammers use rnicrosoft.com domain to impersonate Microsoft by replacing "m" with "rn" in typosquatting attacks that steal login credentials.

OpenAI announces new teen safety rules for ChatGPT users under 18, blocking romantic roleplay and requiring extra caution on body image topics.

A 2025 data breach at fintech company 700Credit exposes personal information of more than 5.8 million people through compromised third-party integration partner.

Retailers lose $76.5 billion annually to return fraud as nearly 10% of U.S. retail returns involve fraudulent activity, with $850 billion in returns expected in 2025.

ShinyHunters claims responsibility for stealing 94GB of Pornhub user data affecting over 200 million records and demands Bitcoin ransom.

ChatGPT 2025 now connects to Apple Music, Canva, Expedia, TripAdvisor and OpenTable through built-in apps that help users create playlists, design graphics and more.

Apple releases emergency patches for two zero-day vulnerabilities actively exploited in attacks. iPhone and iPad users urged to update immediately.

DoorDash launches Zesty, an AI-powered social app that recommends restaurants through conversational search, now testing in San Francisco and New York.

Cybersecurity firm Infoblox reveals that over 90 percent of parked domains now redirect visitors to scams and malware, making simple typos extremely dangerous.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

GPT-5.2 is now live for all ChatGPT users with improved coding, writing and image interpretation, with Kurt Knutsson offering his review.

New iPhone replacement scam uses pressure tactics and fake carrier calls to steal devices from buyers. Criminals claim shipping errors and demand urgent returns.

Amazon Ring's new facial recognition feature sparks privacy controversy as Electronic Frontier Foundation critics argue the AI upgrade expands surveillance risks.

New Android banking trojan Sturnus steals credentials, reads encrypted messages and controls devices.

Denmark's 3D-printed student village proves automation builds 36 apartments faster than traditional methods. Skovsporet project shows housing future.

Discover Android's new Sound Notifications feature that alerts you to smoke alarms, doorbells, and baby cries even when wearing headphones.

New SantaStealer malware reportedly threatens holiday shoppers with password theft. This Christmas-themed info-stealer targets browsers and crypto wallets.

The Christmas season brings a surge in Netflix phishing scams targeting shoppers with fake emails. Stacey P received convincing scam but verified account first.

San Francisco Giants invite Jamie Grohsong to throw ceremonial first pitch at Oracle Park after he learned to play baseball with a bionic hand following an injury.

FBI warns cybercriminals are stealing family photos from social media to create fake proof of life images in virtual kidnapping scams targeting victims.

Instagram's new 'Your Algorithm' tool lets you control your Reels feed in real time. The app now gives you power to customize what videos you see.

Major Marquis fintech breach exposes 400,000-plus Americans' data through unpatched SonicWall vulnerability, with Texas hardest hit at 354,000 affected.

Free up iPhone storage fast by clearing large photos and videos from Messages app. Simple steps for iOS users to delete attachments without losing chats.

Scammers are flooding inboxes with fake tracking alerts that mimic real carriers, exploiting the holiday rush to steal logins and personal data.

The Fox News AI Newsletter brings you the latest news on AI technology advancements and the challenges and opportunities AI presents now and for the future.