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

disinfecting cleaning services Arlington Heights ..

In The News:

ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.

Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.

Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.

Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.

Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.

Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

FoloToy restored sales of its AI teddy bear Kumma after a weeklong suspension following safety group findings of risky and inappropriate responses to children.