Protect your firm from the costly downsides of overdrawing your checking account.

As a business owner, having a check that you’ve written returned can have lasting repercussions—especially if you’ve issued it to a vendor you rely upon for critical supplies or services. Fortunately, there are ways to avoid coming up short.

Consider these ongoing account-maintenance tactics as your best defenses against overdrawing your account and managing your cash flow:

  1. Balance your accounts by recording transactions in your register or ledger, then verifying your monthly statement against it to avoid unwelcome surprises
  2. Sign up for online and/or mobile banking, so you can check your accounts in real time. You’ll even be able to see pending transactions that haven’t yet posted, so you can transfer funds or make a deposit to potentially avoid an overdraft
  3. Ask your bank about the typical clearing times of any checks you deposit, as they can vary widely. Similarly, payments you make may not clear instantly, so don’t be confused if your balance is higher than expected
  4. Learn the basics of transaction postings. Your bank records transactions by either real-time (same day) or end-of-business-day batch postings. This is important because if you’re counting on the funds from a recent deposit to keep you afloat, but it’s part of an end-of-day batch of posts, you might get caught short

Consult with your bank’s customer service team or your business banking specialist to find out the timing for each type of transaction you make.

Your Ultimate Fail-Safe: Overdraft Protection

Since you’re only human—and a time-crunched business owner—you’re bound to make a mistake occasionally. But you can gain an extra measure of protection by linking your checking account to a savings account, credit card, or line of credit you already have with your bank. In the event you overdraw your checking account, your backup funds will bridge the gap.

Once you have a better understanding of how to monitor and manage your checking account, you’re much more likely to avoid a negative balance—and all the hassles that come with it.

Want to Learn More?

Discuss your overdraft protection options with a business banking specialist today. Visit a branch or call us at 1-800-724-6070.



This article is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.


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