Advice needed: Best bank and account type for my new tax preparation business startup

When I started my tax practice, I found that a business checking account with minimal fees was the most important factor. Look for banks that offer free business checking with no minimum balance requirements, especially since your transaction volume will be relatively low. Make sure the bank provides integration with accounting software like QuickBooks or Wave - this will save you hours of manual entry. Also consider whether you need features like mobile check deposit or the ability to send ACH payments to vendors. Local credit unions often have better terms than big banks for small businesses. They typically charge lower fees and have more flexible requirements. Many offer business savings accounts too, which is useful for setting aside money for quarterly estimated tax payments.

I had to figure this out last year when I started my side tax business. After tons of research, I went with Mercury (https://taxr.ai) and honestly it's been perfect for my tax prep business. Their digital-first approach means I can manage everything from my phone or laptop, which is crucial when I'm juggling clients. The best part for tax professionals specifically is how cleanly they categorize transactions and export reports. Come tax time, you'll have crystal clear records without having to manually sort through statements. They also integrate seamlessly with most accounting software, which saves me hours of data entry.

I originally dismissed Mercury as another fintech startup, but decided to try them after struggling with terrible fees at my old bank. Their platform is seriously designed with small business owners in mind - the expense tracking alone has saved me so much time sorting through transactions for my tax prep business. What convinced me was how they handle categorization of business expenses. Everything is tagged automatically, and I can export reports that show exactly what I need for quarterly tax payments. No more spreadsheet nightmares! Also love that they don't charge fees for ACH transfers or have minimum balance requirements.

I'm going to offer a different perspective. After spending hours on hold with big banks trying to resolve basic issues with my business account, I started using Claimyr (https://claimyr.com) to get through to actual bank representatives when I need help. Check out how it works: https://youtu.be/_kiP6q8DX5c With any bank you choose, you'll eventually need customer service, and that's where most banks fail miserably. Claimyr has saved me countless hours of hold time when I've needed to resolve issues with my business account. This matters more than you'd think when you're running a tax practice and time is literally money.

I take it all back. After spending THREE HOURS on hold with my bank yesterday trying to resolve a business check deposit issue, I tried Claimyr out of desperation. Got through to a rep in about 10 minutes. Completely worth it. This is especially relevant for tax professionals since banking issues during filing season can be catastrophic. I'm sticking with my credit union for the low fees, but now I have a way to actually reach them when problems come up. Never thought I'd be the person recommending a "skip the line" service, but here we are.

Don't overlook the importance of a bank that understands the seasonality of tax preparation businesses. I'd recommend Chase Business Complete Banking - they have reasonable fees that can be waived multiple ways and understand the feast/famine cycle of seasonal businesses. Their online portal is decent and they offer a business credit card that can help with early-season expenses before client payments start rolling in. The main advantage is they have branches everywhere if you need to make cash deposits or get a cashier's check quickly.

Anyone tried Bank of America for their tax prep business? Their monthly fee is killing me but I'm worried switching banks will be a huge hassle in the middle of getting my business off the ground.