Managing high-balance bank accounts


As entrepreneurs full of ideas and often working 24/7 to get our innovative startups off the ground, we can sometimes forget little things that will turn out to be important later on. At The Startup CFO, we look forward to guiding you through these processes and helping you plan ahead for the optimal running of your startup, such as managing high bank account balances.

What 's the issue?

El principal factor que debes tener en cuenta es la cantidad de dinero que recibirás y mantendrás en tus cuentas bancarias a medida que tu startup crezca, especialmente al recibir financiación. Esta cuestión suele ser descuidada por los emprendedores, que de repente se enfrentan a una serie de problemas cuando reciben grandes sumas de dinero al cerrar la inversión y la financiación con un Venture Capital.

Los emprendedores se enfrentan a una situación difícil: la perspectiva de pagar altas tasas de comisión sobre grandes sumas, especialmente las que son millonarias. Es importante investigar a fondo las comisiones de cada banco en tu país o región empresarial. Los bancos suelen gestionar su propio conjunto de ofertas o exenciones de comisiones en función del tipo de cuenta que tengas, aunque éstas no siempre sean las más convenientes para los emprendedores en las primeras fases de inversión y crecimiento.

Recuerda que, con una investigación, asesoramiento y planificación adecuados, estas molestas comisiones pueden menudo reducirse.

How can I start managing high-balance bank accounts intelligently?

Los CEOs suelen optar por gestionar su dinero en distintas cuentas bancarias, evitando así la posibilidad de que cobren cantidades de dinero considerablemente elevadas en los saldos de las cuentas. Si esta opción os parece factible, es esencial que seas capaz de gestionarlo correctamente y hacer un seguimiento de cada cuenta, asegurándote de estar 100% al tanto de las condiciones de cada cuenta, de los cargos y de los sistemas de información de los extractos.

This option is often ideal if you can successfully manage to keep your account balance under the maximum pre-commission amount and can successfully extract the information you need for high-quality financial reportings. The Startup CFO offers expert advice and step-by-step guidance with our track record as a successful CFO service for startups.

The alternative: deciding to pay commission.

You’re probably asking yourself the million-dollar question. What should I do if my balances are simply too big to realistically divide between accounts?

  • In these cases, you can keep your money “in one place” and maximize its value, letting it grow, gain value and placing all of your banking relationships within one banking service provider.
  • As well as negotiating, which we’ll explore below, it’s important to simply seek out good financial services with the help of expert advisors or financial managers. Working with the right bank can make all the difference.

Many mainstream banks including Bank of America, Caixa y Scotiabank, among others, include special arrangements or plans for startup accounts in their regional operations in the US, UK and Spain. It’s worth investigating which banks offer the best services for small and growing businesses.

The art of good negotiating

First things first. Be sure to keep an open mind. It’s important to have your numbers straight, know what you want, negotiate assertively and listen to what the bank is prepared to do for you. 

Hiring additional products or add-ons is often a feasible way of negotiating your way out of high-balance maintenance or account fees. Insurance policies and coverage is often an excellent way to waive fees and commission on significant balances.

At The Startup CFO, we join a range of industry experts in strongly advising against agreeing to risky products such as high-interest returning bonds or spread betting. This type of speculation regarding the direction and behavior of an investment can prove to be volatile, unpredictable and result in massive losses.

It has been reported in the UK media that a number of banks have, in many cases, left consumers with information that is severely lacking or that could even be construed as misleading when it comes to placing their money in high-interest returning bonds. Steer clear. Negotiate with your interests, security and medium to long-term goals in mind. It’s also wise to keep the needs and expectations of your investors at the forefront.

Make sure you assess all your options and seek expert financial CFO advice.

As you’ve probably realized, banking and account management can prove to be difficult at the very least and a minefield at worst for driven entrepreneurs embarking on their investment and growth journeys.

Having to deal with so many variables in terms of financial management in combination with the daily demands that a startup puts on any business owner can be exhausting and daunting.

The Startup CFO is an expert financial management service with a track record of providing guidance and execution in the most reliable and result-enhancing financial management solutions. Don’t hesitate to contact us and explore the perfect solutions for the financial management of your startup, including detailed and tailor made solutions for all of your reporting needs.

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