How Can Businesses with a Corporate Account Perform Transactions?12 min read

How Can Businesses with a Corporate Account Perform Transactions?12 min read

A corporate account refers to a banking account that is specifically created for the financial operations of a business. Banks can offer numerous advantages and different regulations for the corporate account. Although there are differences from personal accounts, they are able to perform any transactions in different ways. 

The first and most popular way of transactions is online banking services, which basically means that individuals authorized to carry on operations for an online corporate account can perform any transactions that the bank provides. 

When talking about larger transactions, wire transfers are likely to be preferred. As these transfers are of a large amount of money, businesses need to give more details about themselves and the receiver. 

Holders of a corporate account are also able to use mobile banking apps for transactions; however, it might not be convenient or safe if the amount to be transferred is large.

What Is a Corporate Account?

In short, a corporate account is a bank account opened on behalf of an organization, business or company. It is different from individual accounts. Because it is designed to meet the financial needs of businesses. 

It is opened with the official documents of the business and comes with different campaigns depending on the type, size and needs of the business. Corporate accounts are also used to track the financial status of businesses, facilitate and manage accounting transactions, and track business performance reports.

How Does a Corporate Account Work?

Corporate accounts are opened and used to meet the financial needs of the business and support business activities. Their use is determined by a certain level of authority and access. They are also used to keep accounting records, create financial reports, and analyze business performance. 

It makes it easier to separate business expenses from personal expenses, allowing tax returns, financial audits and business costs to be accurately prepared, processed and tracked. 

Additionally, corporate accounts have stricter security measures, and they protect against financial risks. Finally, these accounts and/or account holders can benefit from special services and professional advice offered by banks and financial institutions. 

As examples of these services; cash management, investment strategies and financial planning of businesses can be given.

What Are the Advantages of a Corporate Account?

Although it may vary depending on the bank or account type to be chosen, the advantages of a corporate account can generally be listed as follows: These are products and services designed specifically for each bank’s corporate customers. Cash management, business loans, etc.

Secondly, banks may offer benefits such as lower transaction fees to corporate accounts, and there may also be additional special discounts for corporate accounts with high balances. They can offer corporate account holders the opportunity to make fast transactions by opening special communication channels, such as appointing special advisors. 

Third and finally, they provide ease of accounting and the ease of managing several different accounts (i.e. tracking expenses, categorizing, reporting, etc.) from a single platform.

What Is the Difference Between a Private Account and a Corporate Account?

Private banking accounts are generally accounts designed for an individual’s own use. They are used to meet personal financial needs such as salary, expenses and savings. But corporate accounts are mostly opened for businesses, companies or institutions and are used for financial transactions of related activities. 

To start from the beginning; first of all, there are differences in purpose between these two types of accounts. Individual accounts cover a person’s income, expenses, savings, and personal finances. Corporate accounts include businesses’ income, expenses, tax treatment and operating costs.

Additionally, banks offer personal financing needs such as personal loans, savings accounts, etc. to individual accounts. Corporate accounts, on the other hand, involve larger sums of money and offer services such as business loans, cash management services, etc. for more businesses. 

Additionally, while the accounting structure of corporate accounts can be quite complex, the accounting structure of individual accounts is much simpler. Finally, the tools used by banks for these two different account types in terms of financial tracking and reporting vary from simple to complex.

What Is the Difference Between Personal Banking and Corporate Banking?

Personal banking is one of the financial services designed to meet people’s financial needs. The interest is often particular. On the other hand, corporate banking is banking services created to manage the financial needs of businesses, companies and/or institutions, where larger amounts can be allocated for use. 

While personal banking generally focuses on an individual’s income, expenses and savings, corporate banking focuses on business income, cash management, growth strategies, etc. There is also a huge difference in risk size between these two types of banking.

Can I Transfer Money from Personal Account to Corporate Account?

The availability of transferring money from a personal account to a corporate account is generally possible, but there may be slight differences or additional procedures that depend on the banks’ regulations. In order to clarify, some banks might have restrictions regarding the transfer, or they might implement different taxation from any other transaction. 

The Kingdom Bank aims to keep its fast, easy and user-friendly reputation and make any banking operation accessible and understandable for its customers. Therefore, it is possible to transfer money from a personal account to a corporate account as long as the sender and the receiver accounts are authorized.

How to Open a Corporate Account?

First of all, you should do your research and choose a bank. After making sure that your choice suits your business needs, you should contact the bank and learn how to apply for opening a business account. After stating that you want to open a corporate account, you will need to prepare the documents requested by the bank to open a corporate account and submit them to the bank. 

Examples of these requested documents are; Business identification documents, (company registration certificate, business license, tax number, etc.) the field of activity and job description of the business, address information of the business, documents showing its financial situation (income statement, balance sheet, etc.) and identity and contact information of business owners or managers can be provided. 

If your application is approved, the bank will give you an account number with account details. Finally, you can open your account thanks to the instructions provided to you by the bank you have chosen. These directives usually include paying the account opening fee, making the initial deposit and so on.

Best Digital Bank to Open a Corporate Account

Defining the best online bank relies on several criteria such as the needs and aims of the corporation, special offers for business accounts, available customer help and support, included banking tools and services, and so on. The Kingdom Bank offers fast, effective and customer-friendly services for customers. 

If you are considering opening a digital banking corporate account, do not hesitate to contact The Kingdom Bank for your questions and doubts. You can get personalized offers, detailed information about the system, and advice on how to carry on financial operations safely and securely.