We are always talking about banks here, whether it be about how to get a loan, or what type of loan/LOC or refinancing, interest rates, etc. I don't see many posts regarding business account setups and accounting strategies, though. I am having some questions and concerns that I thought might be useful to other people if we can get a discussion going.
Firstly, in the buy and hold world, it is widely suggested to setup bank accounts for each individual property to track your numbers. I like this method, however I have some concerns about the scalability. Currently I have 6 business accounts open for my properties. My bank requires a minimum of 1,500 dollars per account to avoid maintenance fees. This starts to tie up funds quickly when scaling.
Secondly, my bank also wants to charge me a monthly fee per account for having more than 3 accounts with online banking capability. This can be hundreds of dollars per year.
Have you come across any of these problems? How do you set up your business banking? Are these types of fees and limits normal? How can these issues be avoided while scaling?
Thanks for reading!
We only have one account but keep it very detailed with funds for tax purposes.
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