We talked about opening and then closing a TITF account as part of registration of a corporation with the SEC. Now let’s talk about opening your real business account.
First, a refresher on some basic accounting:
The Imprest System
Small or miscellaneous amounts are paid in cash out of a Petty Cash Fund (say P5,000 or P10,000 depending on your spending behavior). And all other expenses, including electricity, salaries, broadband, rent, etc are paid by check.
Checking Account
So, you need to open a checking account. Here are the minimum amounts for just the regular non-interest bearing checking account. Just a place to store and spend your money.
Metrobank, Unionbank, BPI - P10,000
UCPB: P20,000
HSBC: ~P300,000
From our TITF Account Example, you have to deposit the entire P62,500 into this new account.
Who are the Signatories?
Most likely, you’re investing with friends so you want to be careful with each other’s money. Always have at least two signatories — that’s AND, not AND/OR. Better if the Treasurer is always one of the signatories.
Which bank?
Considerations might be online banking, maintaining balances, proximity to your office, affiliation with Paypal. I sent an inquiry fax and/or email detailing our concerns to the branches of all the major banks within walking distance.
- BPI - emailed and faxed to the Buendia branch. No response.
- BPI Family Bank - emailed and faxed to the Mayapis branch. No response.
- Chinatrust - faxed to Buendia branch. Sales officer visited our office to explain options and requirements.
- Export and Import Bank - tried to fax to Chino Roces/Main branch. I finally got tired of calling to get their fax number.
- Landbank - faxed and emailed to Dela Rosa branch. No response.
- Metrobank - faxed. Branch manager visited our office with Lawrence from the Head Office’s Cash Management department to explain their online banking service.
- Planters Development Bank - emailed to Buendia/Main branch. Branch manager visited our office discussing options. Really geared toward SMEs.
- PNB - emailed and faxed to Buendia branch. Branch manager emailed in a matter of days, called, and was willing to set an appointment. I know PNB to be always crowded though so I didn’t pursue.
- Security Bank - quick email response by the Dela Rosa branch manager. Their online banking starts at P500,000. When I replied that we can’t maintain that much and what were our options, she didn’t get back to me.
- UCPB - I made an OTC deposit once and left my card with the sales officer. She followed up and then visited our office with the branch manager.
- Unionbank - faxed and followed up thrice at the Vito Cruz branch. Relationship Officer visited our office. Online banking, 1hub.gov pay to SSS, Philhealth, and Pag-ibig.
Prepare your Requirements
You’ll need:
- SEC Certificate of Registration — remember I told you to make about 20 copies of your SEC documents?
- Photocopy of Articles of incorporation
- Photocopy of By Laws and all other SEC docs
- Photocopies of 2 valid IDs each of the signatories
- List of Stockholders
- Roster of Officers
- Notarized Secretary’s Certificate - request for the template from the bank. Each bank has a different format.
Requirements may vary from bank to bank. Call the branch to check. Best if you meet with the branch manager when you open your account.
The Secretary’s Certificate just says that “your Board of Directors has decided to open a checking/savings/term deposit/etc account at Bank X Branch Y” and so on. The authorized signatories are Name - Position - Sample signature and so on. This is certified to be correct by the Secretary by his signature and then notarized.
Keep a copy of the Secretary’s Certificate in a folder labeled “Bank Account - Bank X”. Keep another one in a folder labeled “Secretary’s Certificates”. You’ll only need to submit 1 copy to the bank.
You fill out account opening forms of the bank and deposit the P62,500. For now, pay out of your own pocket the checkbook fee which is P250-P500 and just reimburse it when you establish your petty cash fund. You now have a business checking account.
Tips for Hassle-Free bank account management
- Store the account number on your phone or PDA — always good to have it handy.
- Store 5 to 10 deposit slips so you come to the counter prepared.
- You don’t need withdrawal slips because all cash disbursements will be made by check.
- Reconcile your checkbook every month with the statement given by the bank. I picked the statement up personally with our old bank. Together with the statement are the canceled checks, i.e. checks that have cleared.
How I wish someone had told me all this before we started!
