Individuals can have any number of accounts: one with a higher cashback, one with a credit account, one with a payroll account, and so on. Individual entrepreneurs and legal entities can do the same. We’ll tell you why you should open several accounts and how to work with them correctly to avoid being blocked.
There are at least six reasons to open a second current account in another bank.
Insurance against revocation of a bank’s license and bankruptcy
Every year, the Central Bank liquidates dozens of credit institutions. For example, in 2019, 15 banks were liquidated, another 24 had their licenses revoked.
The bank’s obligation to an individual entrepreneur or small business will be repaid by the state. But the amount of compensation is strictly limited. According to clause 3 of article 11 of law № 177-FZ from 23.12.2003, an affected business will not receive more than 1 400 000 rubles. Thus, it is risky to keep a large amount in one bank.
Chances of medium and large organizations to recover their losses in such situation are minimal. Their money is not covered by insurance, and compensation claims are considered the last priority.
The distribution of cash flows among different banks will help minimize losses in case one of the banks goes bankrupt and allow the company to work without downtime.
Save money and time
Transferring funds between different banks costs money. Time lost while a payment is being sent to you or a customer can be critical. For example, if you fail to deliver materials, production will stop. That is why it is more advantageous to carry out settlements with regular contractors within one bank.
It is easier to make foreign currency payments through international banks with branches all over the world. Then, transfers are made without or with a minimum number of intermediaries, i.e., they are faster and cheaper. But other services in such banks are expensive, and conditions for loans and deposits are often unprofitable.
Different banks offer different conditions of cooperation:
- One has a convenient payroll project and bonuses for company employees;
- Another bank offers preferential lending terms and interest on the account balance;
- A third bank offers a high one-time cash withdrawal limit and low acquiring commission.
- Given these factors, it is advantageous to have several accounts for different aspects of the company’s activities.
Important: Before opening a new account it is worth calculating the costs: compare the monthly cost of paying tariffs with the expected savings on commissions, the benefits of bonuses and benefits.
Operational work of branches and subdivisions
Several branches with large turnovers is a serious burden on the head organization. In this situation it is rational to have separate accounts for each branch. So branches can independently conduct settlements with counterparties, pay workers, payroll taxes and contributions. The administrative workload is redistributed, and the company’s operating efficiency increases.
If there is a retail network, it is convenient to have separate accounts for each outlet. This makes it easier to keep records and assess the profitability of each facility. In addition, if necessary, it is more convenient to hand over cash proceeds to a bank near the store than to take them across town.
Convenient accounting when combining tax regimes
Companies and private entrepreneurs often combine several tax regimes in their activities. In such cases, they are obliged to keep separate accounts for income and expenses. The opening of separate accounts for each regime simplifies tax accounting.
For example: a private entrepreneur has two kinds of activity, one with 6% of the simplified tax system, and the other with a patent. This means that he simultaneously keeps two ledgers of income and separately records revenue for each kind of activity. An entrepreneur opened two current accounts. The details of the first account he gives in contracts with clients under the simplified taxation system. He uses the second account to accept money from clients under the patent. It is now easier for him to keep track of receipts for each tax regime.
Productive work of staff
The work of managers is more effective if there is a possibility to keep track of clients’ payments by the bank without leaving the CRM-programs. If the bank has no CRM integration, managers have to constantly distract the accounting department to find out about money coming in. This slows down the work.
Not all banks support the exchange of documents directly from accounting programs. Sometimes employees spend time uploading, downloading files, or manually entering a payment into an online bank. The ability to send a payment order or payroll register to the bank in one click saves time and reduces the number of technical errors. As a result, the speed and quality of accounting work increases.
Thus insufficient technical equipment of the bank reduces the productivity of the staff and the company as a whole. The optimal solution is to open an account in a bank that supports the necessary software, and transfer to it operations for a particular area of accounting.
Many companies prefer to divide up not only separate accounting areas, but also prepayments and postpayments from clients on different accounts. This condition is fixed in the contract. This approach simplifies the work of accountants in planning the tax burden and maintaining document management, while managers and logisticians help keep statistics on clients, schedule a timely shipment and delivery of goods.
Insurance against technical failures in the bank
Even large banks are not insured against technical problems. An online bank failure could deprive a company of access to an account for several hours. If you have another active account, you can send all urgent payments on time.