Best Business Bank Accounts In Canada

Jun 19, 2024 | Banking

Why Opening a Business Account is Important for Your Success

 

Small business owners often have a lot on their plates, which is why creating an organized and streamlined operation is so important. You want to cut down on the time it takes to complete any given task or operation as much as possible. This leaves you with less time so that you can focus on growing your company instead of spending hours every week on repetitive tasks. Fortunately, there are various ways that small business owners can streamline and simplify their operations.

One way is by opening a business account. Having a business bank account has several benefits, but they mostly boil down to streamlining your accounting and finance management while keeping personal funds separate from business funds. If this sounds like something that will help you run your business more efficiently, read on to learn more about why opening a business account is important for your success.

 

What is a Business Account?

A business account is a specialized banking account that helps you organize your financial and accounting process. It can be useful regardless of the type of business you run, from a small service-based company to a large manufacturing operation. A business account gives you the ability to keep track of all of your company’s finances in one place, which makes it much easier to manage your cash flow. Plus, it allows you to separate your business funds from your personal funds. Having this account also gives you access to business banking services that make your operations easier and more efficient.

The kind of business account you open will depend on your individual needs, as different types of banking accounts are designed to suit different types of companies. There are several types of business bank accounts, including a business checking account, a business savings account, and a business money market account. Before you open a business account, you should research the available options and find one that best fits your needs.

 

Streamlining Your Accounting Process

Having a business account will help you streamline your accounting process. This will make it much easier to keep track of your accounts and financial obligations, which will help you stay on top of your finances and meet your obligations on time. Especially when you first start out, accounting can feel like a full-time job just to stay on top of your bookkeeping. This can put a significant strain on your time, which is why it’s important to find a way to streamline this process.

When you open a business account, you can use software to automatically download and upload your transactions, which will make keeping track of your finances much easier. This can save you lots of time that you can then reallocate to more pressing issues in your business.

 

Streamlining Your Financial Process

Managing your finances and accounts can take up a lot of time and energy. Whether you’re manually logging your expenses or attempting to reconcile your accounts, this process can be tedious and time-consuming. The good news is that a business account can help you streamline your financial process. By managing your finances through your business account, you can simplify the reconciliation process while saving yourself time and energy. Plus, you can access online banking, which gives you access to account information and transaction data whenever you need it. This can help you stay on top of your finances without having to log hours every week to reconcile your accounts manually.

 

Separate your business and personal funds

Opening a business account allows you to separate your business funds from your personal funds, which is important for tax purposes. This means that you won’t have to use money from your personal account to cover expenses for your business. This will protect your personal finances from being drained by your business.

Using a separate account will also help guard against fraud. Having a separate business account prevents would-be fraudsters from accessing your personal funds. Plus, it makes it easier for you to keep track of where your money is going. Having a single account for both your personal and business finances makes it harder to keep track of where your money is coming from and where it’s going.

 

Business Bank Accounts in Canada

 

 

TD Small Business Accounts

TD has 5 different offerings for small business accounts.

TD Basic Plan TD Every Day A TD Every Day B TD Every Day C TD Unlimited Plan
Monthly Fee $5 $19 $39 $72 $125
Fee rebate with minimum monthly balance N/A $20,000 $35,000 $45,000 $65,000
Transactions included per month 5 20 60 120 Unlimited
Deposit items included per month 5 50 50 50 Unlimited
Cash Deposits Included per month $2.50 per $1,000 $5,000 $5,000 $5,000 $25,000

How to open a business bank account with TD

If you are ready to open a business account with TD then you will need some information.

  • Trade Name Registration or Notice of Assessment

You can open an account online if you are a sole proprietor or single-owner business. For busineses with multi-owners or multi-signors you will need to book a virtual appointment or walk-in to any TD branch.


Scotiabank Small Business Accounts

Scotiabank has 3 different offerings for small business accounts.

Basic Account Select Account A Select Account B Select Account C Unlimited Plan
Monthly Fee $10.95 $20 $40 $75 $120
Fee rebate with minimum monthly balance $8,000 $20,000 $35,000 $45,000 $75,000
Transactions included per month 1 free transaction per $1,500 in the account 25 70 125 Unlimited
Deposit items included per month Cost per transaction 50 60 85 Unlimited
Cash Deposits Included per month Cost per transaction $6,000 $8,000 $10,000 $30,000

How to open a business bank account with Scotiabank

If you are ready to open a business account with Scotiabank then you will need some information.

  • Trade Name Registration
  • Canada Revenue Agency registration number (if available) Canada Revenue Agency registration number (if available)

You can open an account online or if you prefer you can walk-in to any Scotiabank branch.


Bank of Montreal (BM0) Small Business Accounts

 

BMO has 6 different offerings for small business accounts.

eBusiness Plan Business Start Business Builder 1 Business Builder 2 Business Builder 3 Business Builder 4
Monthly Fee $0 $6 $22.50 $45 $80 $120
Fee rebate with minimum monthly balance N/A N/A N/A N/A $35,000 $80,000
Transactions included per month Unlimited (electronic transactions) 7 35 70 120 160
Deposit items included per month 0 0 25 45 65 90
Cash Deposits Included per month $0 $0 $2,500 $4,000 $8,000 12.000

How to open a business bank account with BMO

If you are ready to open a business account with BMO then you will need some information.

Sole-proprietor:

  • Trade Name Registration, or
  • Master Business License

Partnership:

  • Partnership Registration (if applicable)
  • Partnership Agreement

To open a BMO Business Account you will visit a branch.


Royal Bank of Canada (RBC) Small Business Accounts

 

Royal Bank of Canada has 3 different offerings for small business accounts.

Digital Choice Flex Choice Ultimate Business Account
Monthly Fee $5 $6 $100
Fee rebate with minimum monthly balance N/A N/A $75,000
Electronic Transactions Unlimited 0 Unlimited
Deposit items included per month Unlimited Moneris Deposits Unlimited Moneris Deposits Unlimited Moneris Deposits
Cash Deposits Included per month $0 Preferred pricing $25,000

How to open a business bank account with RBC

If you are ready to open a business account with RBC then you will need some information.

  • Government issued ID (Canadian Passport, Canadian Driver’s Licence, Canadian Permanent Resident Card
  • Articles of Incorporation/Certificate of Existence/Master Business Licence

You can open a business account online, however, you will have to visit a branch to verify your identity and activate your account.

Canadian Imperial Bank of Commerce (CIBC) Small Business Accounts

 

CIBC has 4 different offerings for small business accounts.

Cost Effective Basic Unlimited Business Account Advanced Business Account
Monthly Fee $0
$20 for self-service access
$25 for full-service access
$6 $65 $35
Fee rebate with minimum monthly balance $15,000 N/A $45,000 $35,000
Transactions 30 Pay per use Unlimited 100 (Interac)
Cash Deposits Included per month Pay per use Pay per use $15,000 $5,000

How to open a business bank account with CIBC

If you are ready to open a business account with CIBC then you will need some information.

Sole Proprietors

  • Business or trade name registration

Partnerships

  • Partnership registration; or
  • Partnership agreement

You can open a business account online, however, you will have to visit a branch to verify your identity and activate your account.