Why do companies require multiple business bank accounts?

A business bank account is a necessity for any company. However, you may wonder, “Can I have 2 business bank accounts?”. The short answer is yes, you can. 

But our team at Genome also wants to explain why you might need more than one business bank account and the benefits of having multiple business accounts.

Business bank account: the fundamentals of your financial journey

A business bank account is an account you can open in a brick-and-mortar bank or other financial institution. The account is in your company’s name, and you can use it for corporate financial operations. Simply put, to make transfers and payments, accept payments from clients, send salaries to employees, etc. 

At the surface level, it seems that a business bank account is just like a personal one, but for your company, as it encompasses many features needed for day-to-day financial operations. 

However, when we look at the sheer number of different types of business accounts, it clearly indicates that companies expect various features and services. 

Here’s the list of the most common business bank accounts:

• Business checking accounts;
• Business savings accounts;
• Investment accounts;
• Business certificates of deposit (CD) accounts;
• Business money market accounts (MMAs);
• Foreign currency accounts for business;
• Merchant accounts.

As you can see, there are many options, as the accounts have distinct benefits and differences. It is, ultimately, one of the reasons why some entrepreneurs prefer having multiple bank accounts for business. However, many other causes exist for opening more than one business bank account. 

Why companies need multiple business bank accounts

1. You operate in different countries or regions. Imagine a situation: you have a store in Montreal, Canada, but want to expand your operations and open a branch in Bologna, Italy. In this case, you will likely need to open a separate business bank account in Bologna for convenience reasons. It can be at a different financial institution or your original bank if it has branches in Italy.
2. You have more than one company/project. Your company grows, and so are your ambitions. With time, some businesses start additional projects as part of their operational activity. For instance, an IT company specializes in the development of web browsers and related software. While working on the web browser software, the company also came up with a special security software, and it now wants to promote it as its separate product. Thus, it is only logical that they separate the two and open a new business bank account for their security software project.  
3. You need to use your business bank accounts for different purposes. Sometimes, having multiple bank accounts for business is just a matter of convenience. You can use your main business bank account to settle payments from a merchant account and, at the same time, have another business account exclusively to pay your employees and a third account that you will only use to store your emergency fund. These are only some examples, as there are many uses for business bank accounts. 
4. You want to benefit from different banking products and discounts. The market of banks, payment providers, and other financial institutions is getting oversaturated, and all of them compete for clients’ attention. And, as expected, to attract more customers, financial institutions provide discounts and advantageous offers for some of their services. An entrepreneur can greatly benefit from the situation by opening multiple business accounts in different banks. For instance, a company can get a business bank account with a financial provider that offers SEPA and SWIFT transfers with relatively low transfer fees and use it to send money to partners and contractors. At the same time, they can apply for another account at a bank that has savings accounts and pay high interest. 
5. You need multiple accounts to improve your cash flow management. The Genome’s team has previously stated how important it is to closely track and manage your cash flow. Having multiple business accounts can help with that! You can start three business bank accounts to track operational cash flow and cash flows from investing/financing. It will be easier to track all these separately. The same can be said about financial planning – you can open business accounts to separate funds for your short-term and long-term financial goals. 
6. You get additional business accounts for security reasons. Suppose your employees manage some of the accounts’ services (financial management, corporate expenses, etc.). In that case, there is a chance that you won’t want them to have full access to all the company’s funds for security reasons. The situation can be avoided if you have multiple business bank accounts and divide funds between them.  
7. You need a financial cushion. An emergency fund is a good idea for any business, no matter if it works in a high-risk or low-risk industry. Open one more business bank account to keep your savings there. 
8. You keep funds in different banks in case of emergencies. Unfortunately, unpredictable situations happen, and some financial institutions can face instabilities in their work. It can be linked to anything – from economic problems to natural disasters and wars. In such cases, having multiple business bank accounts can be a plus. 
9. You want to simplify reporting, records keeping, and audits. Applying for multiple business accounts can streamline record-keeping and financial reporting, making audits and financial analysis more straightforward.
10. You are required to have separate bank accounts. Last but not least, some industries or jurisdictions require companies to open separate business bank accounts for specific types of funds, like client trust accounts in legal or financial services.

In conclusion, if you still wonder, “Can a business have two bank accounts?” just look at the number of reasons listed! Opening additional business bank accounts can be beneficial for security, cash flow and financial management, additional services, and more. 

Genome’s multi-currency business accounts

If you need multiple business accounts, look no further than Genome! Our Electronic Money Institution offers business wallets to companies in the EU and other European countries.

Inside a wallet, you can start multiple accounts! Not only that, but they have a multi-currency feature, meaning you can have up to five accounts in each currency: EUR, USD, and GBP.  

Using our business accounts, you gain access to:

• Seamless, easy-to-track SEPA transfers and Genome’s instant internal money transfers. 
• Physical and virtual corporate Visa cards. Order the cards online – the virtual ones will be available instantly, and we will deliver physical cards to any EU country. All our cards are contactless and Google Pay, Apple Pay, and Garmin Pay-compatible. Moreover, you can now activate the first 100 virtual cards for just 1 EUR/card;
• Shared account feature, which allows the wallet owner to give secure access to the employees and share the workload;
• Mass payouts: send out up to 3000 transfers at once;
• Merchant accounts*, allowing you to accept payments from customers in over 20 currencies using various payment methods;
• Cuspotamible payment pages* – choose between host-to-host, hosted payment pages, or mobile SDK options.

*Please note that Genome’s merchant services have been temporarily unavailable since September 2024.

The application process for Genome’s business wallet is very simple and takes place entirely online! All you need is to:

1. Sign up to Genome and choose a business wallet option;
2. Pass a personal verification by filling out short information about yourself;
3. You will then need to provide general information about your business and upload a full company profile/ extract from the business registry or separate company documents/certificates with the company data.
4. Finish the process by providing information on the ownership structure.

Feel free to check Genome’s guide for detailed instructions on how to start a business wallet!

FAQ

Is it okay to have multiple business accounts?

Yes, using more than one business bank account is absolutely normal. And we have listed 10 genuine reasons to open multiple business accounts above! You can have 2 business bank accounts with different banks or start additional accounts at your original financial institution. Consider opening multi-currency business accounts at Genome and get access to merchant accounts, SEPA payments, corporate virtual and physical cards, batch transfers, customizable payment pages, and more!

Can I have 3 business accounts?

Yes, you can have 3 business accounts. In theory, you can have as many business bank accounts as you want. However, you need to consider your resources and requirements first, as well as the fees for using business accounts. For instance, startup companies likely won’t need more than one account initially.

Can you have multiple business accounts with one bank?

Yes, you can have a couple of business bank accounts within one bank, especially when you consider that many financial institutions now offer different business account types. For instance, you can apply for checking, savings, and investment accounts – all within one bank. 

How do I set up multiple business accounts?

It is simple: first, you need to research and select a bank that offers the types of accounts you need. To apply, gather documentation, such as the business’s legal paperwork and personal identification for business owners. Lastly, you will need to apply for accounts.