Banking Solutions for Sole Proprietorships: Best Options for You and Your Clients

Managing finances is a critical part of running a sole proprietorship, both for you and your clients. Choosing the right banking solutions can help streamline your processes and keep personal and business transactions separate. Here are a few banking options that could help you and your clients manage your finances more effectively.

RBC Digital Choice Business Account Package

If you and your clients prefer to bank digitally, the RBC Digital Choice Business Account Package offers excellent features for small business owners:

• Unlimited electronic debit and credit transactions: Save time and focus on your business without worrying about transaction limits.

• Unlimited electronic cheque deposits: Deposit cheques easily via your mobile device and put money back into your business faster.

• Unlimited Moneris deposits: Accept payments through credit and debit cards without worrying about deposit limits.

This account is perfect for those who prioritize convenience and want to save both time and money by leveraging digital banking.

EQ Bank: An Alternative for Sole Proprietors

While EQ Bank doesn’t offer specific business accounts, it’s a great alternative for managing your business finances as a sole proprietor. With no monthly fees and high-interest rates on your balance, EQ Bank stands out for personal and sole proprietorship banking. Here’s what you and your clients can expect:

• No monthly fees: Earn 4.00% interest on everyday banking with unlimited transactions.

• Free ATM withdrawals: Withdraw cash from any ATM in Canada without fees.

• Cashback on purchases: Get rewards on every purchase with the EQ Bank Card.

• Top-notch security: Your deposits are insured by CDIC, and EQ Bank is backed by Equitable Bank, with over 50 years in the Canadian market.

One thing to keep in mind is that EQ Bank does not integrate with QuickBooks Online. You’ll need to manually upload your bank statements when performing monthly reconciliations. However, for sole proprietors looking to avoid bank fees and earn interest on their balances, it’s a flexible and cost-effective option.

Want to get started with EQ Bank? Sign up with my referral link and we’ll both get $50 when you deposit $100 within your first 30 days! Click here to join EQ Bank.

Why You Should Consider a Filter Account for Personal Transactions

It’s common for sole proprietors to mix business and personal finances, but keeping them separate is critical for accurate record-keeping and tax compliance. I recommend using a filter bank account for personal transactions. Banks like Tangerine, KOHO, or EQ Bank offer $0 monthly fees, making them great options for this purpose. Here's how a filter account can help:

1. Owner’s Draw: Transfer funds from your business account to your filter account or personal account via e-transfer, and label these transfers as "Owner’s Draw."

2. Limit Transfers: I recommend limiting these transfers to 2-4 times a month. This keeps your financial activity organized and easy to track.

3. Separate Expenses: Make sure business expenses are paid through your business account, while personal expenses come from your filter or personal account. This practice makes bookkeeping easier and ensures that your financial records stay clean and organized.

   
   

Conclusion

Choosing the right banking solution for your sole proprietorship is essential for financial organization and success. Whether you opt for RBC’s business banking features or EQ Bank’s high-interest, fee-free model, keeping personal and business finances separate is key to running a smooth operation. Encourage your clients to adopt these practices, and you’ll all benefit from greater clarity and control over your finances.