Nibletz Staff
While effective and up to date sales practices are some of the most important aspects of your startup, staying on top of your company finances is also important. Not only can you ensure that you have the funds you need when you need it, keeping your finances organized also looks good when you are trying to raise funds from potential investors.
Thanks to the rise of smartphones and other portable computers, you can now access your accounts through mobile banking websites and applications.
If you are considering using mobile banking as part of your business practices, here are some things to consider.
Advantages of Mobile Banking
The biggest advantage to mobile banking is that you can easily access your accounts at any time, from any location with Internet access. Not only can you check your bank balance and transfer funds, you can write checks and make electronic payments, and some banks will even let you report lost or stolen cards.
These functions come in especially handy if you spend a lot of time on the road, or in client meetings, and don’t have a lot of time to go to the bank.
For example, suppose you are meeting with clients and are considering continuing the meeting over drinks. You should have enough money to cover it because you are expecting some deposits from other clients; but you also have several vendor payments scheduled to post. With your bank’s online app, you can use your phone to check your deposits and withdrawals, and confirm that you have enough cash to cover the bar tab, well in advance.
Online banking apps can also alert you by text or email when deposits post to your account, when your balance is low, and even when payments are due, so that you don’t have to manually check for that information.
You can even use mobile banking to set up automatic account transfers. For example, you can schedule your bank to transfer a certain amount of money from your business checking to your business saving on the last day of each month.
Another option is to put flags on your primary account, and when the account drops below a certain balance, your bank automatically transfers funds from your savings to raise the balance. Some apps might even let you set daily spending limits to prevent you from overspending on your business account.
You can set up automated bill pay, so that your vendors and contractors always get their payments on time. Mobile banking also allows you the flexibility to make changes, on the fly, to automated payments and transfers.
If you want more info, learn about the benefits of mobile banking from Discover Bank, or whichever financial institution you use.
Things to Consider
That same accessibility that makes mobile banking so convenient can also lead to security issues, if not handled properly. If you access your account from smartphone or other mobile device, it’s easy to accidentally leave yourself logged in to your banking session when you return to your home screen or switch to other apps.
Some apps will automatically log you out after several minutes of inactivity, but the best way to avoid leaving yourself logged in is to make sure to manually log out after each session. to remember user names and passwords, turn that function off to prevent anyone else from using your device to access your information.
If you log in to your account on a computer, make sure you do not have the browser set to memorize your login information, and always log out at the end of each session. You should also avoid logging in to your account on a public Wi-Fi, or on a public computer.
Change your password every few months, and make sure it is something you can remember, and not one that you have used for other accounts.
On the bank’s end, make sure the online banking site is a secure site and that the app you use is also secure. At the very least it should require you to enter a password to access your information; it should also have a maximum number of incorrect logins, and lock you out of your account after too many incorrect attempts.
If you need to call your bank to access that information, they should require you to enter a code and personal information to gain access to your account.
Conclusion
Mobile banking is a great way for a startup business to manage its funds, improve its credit rating, and show positive financial habits to potential investors. If you are not currently using mobile banking, contact your financial institution for more information.
