While many people have ambitions of starting their own business, the finance side of doing so can be a major factor that stops them from pursuing their dream.
The compliance requirements and tax admin that running a business entails can be daunting. In addition, business banking plays by different rules to personal banking, with additional fees for services and a lack of flexibility – both things that new businesses will not be keen on.
But it doesn’t have to be this way. Virtual banking can help minimise the headaches around the finances of starting and running a small business, and in doing so help business owners become more comfortable and confident when dealing with business finances.
Virtual banking provides customers with a virtual record of all of their financial transactions. By logging into their virtual account, business owners can get an easy-to-comprehend overview of their financial transactions in near-real time. This enables them to keep track of their finances and ensure income and outgoings are correct and up to date.
Transparency is another area virtual banking can help with. It means payments made to suppliers and received from customers are dealt with in the most efficient way. The business owner can quickly and easily respond to queries by accessing the virtual record of payments to determine the reason for discrepancies.
As well as making it possible to quickly keep track of financial transactions, virtual banking makes it easier to monitor cash flow in near-real time, helping with financial planning and growth plans. Virtual banking also does away with the need to maintain a physical paper trail, along with the management effort this requires.
When it comes to compliance and taxes, virtual bank accounts provide an overview or a more detailed analysis of company finances and payments with a few clicks of a mouse button, making the auditing process much less onerous.
And while flexibility is a major benefit of virtual banking, this isn’t at the expense of security. Managing finances and completing transactions on mobile devices is made more secure through the use of two-factor authentication, while many modern smartphones come equipped with biometrics technology – such as fingerprint, iris or voice recognition – to keep access to the business bank account secure.
Another element in becoming more finance savvy is being able to access appropriate customer services when needed. Customer service and support from virtual banks is available 24/7, meaning issues can be resolved quickly, even if they occur outside normal business hours.
The ability for small-business owners to gain an overview of business finances through virtual bank accounts, as well as get more in-depth information for certain tasks and quickly rectify issues, means getting to grips with the financial side of running a business is less shrouded in mystery than it once was.
For people starting out in business, virtual banking provides the tools and support to help them become truly finance savvy. And, who knows? – it could mean business ideas that may not otherwise have seen the light of day could become the next big thing.