52 posts tagged with "small business"

Turn one messy ledger into a calm, cash‑confident business in 30 days—using plain‑text accounting.

TL;DR​

• Separate, simplify, and lock your books with a lean chart of accounts, consistent imports, and automated balance checks.
• Surface what matters—COGS, overhead, cash runway—via quick bean-query reports.
• Cut the noise (unused subscriptions, duplicate tools) and codify good habits (weekly reconcile, monthly close, receipts attached).
• Make tax season boring by keeping statements, receipts, and balances verifiable in one place.

Why a “Detox”?​

Financial clutter in a small business isn't just messy—it's expensive. It hides wasteful spending, obscures your true profitability, and turns tax season into a frantic scavenger hunt. A financial detox is a focused, 30-day reset: you identify what moves (and leaks) money, remove the complexity, and then institutionalize simple, repeatable routines to keep it clean.

Beancount is the perfect tool for this because it’s transparent, scriptable, and verifiable. Unlike black-box software, a plain-text ledger means every number is explainable. Every check and balance can be automated with directives and queries, creating a self-auditing system that forces clarity. This guide will walk you through a four-week plan to achieve just that.

Week 0 — Set Your Baseline​

Before you can clean up, you need a solid foundation. This week is about defining the structure of your financial world.

Create a Lean Chart of Accounts​

Your chart of accounts is the skeleton of your financial system. The goal here is minimalism. Don't create an account for every possible expense you might have. Start with the essentials you use today; you can always add more later. A cluttered chart of accounts encourages miscategorization and makes high-level analysis difficult.

Here’s a simple, effective starting point:

; Core entities
2025-01-01 open Assets:Bank:Checking           USD
2025-01-01 open Assets:Bank:Savings            USD
2025-01-01 open Liabilities:CreditCard:Business USD
2025-01-01 open Income:Sales
2025-01-01 open Expenses:COGS
2025-01-01 open Expenses:Overhead:Rent
2025-01-01 open Expenses:Overhead:Utilities
2025-01-01 open Expenses:SaaS
2025-01-01 open Equity:Opening-Balances

Lock Balances You Can Verify​

The most powerful feature in plain-text accounting is the ability to assert reality. A balance directive tells Beancount: "On this date, this account had exactly this much money." If it doesn't, Beancount will raise an error. This is your primary safety net.

When starting out, use pad in combination with balance to initialize your accounts from a bank statement. The pad directive creates a transaction that forces the account to the correct starting balance, booking the difference to an equity account.

; Initialize from statements
2025-01-01 pad     Assets:Bank:Checking      Equity:Opening-Balances
2025-01-01 balance Assets:Bank:Checking      12345.67 USD

A word of caution: Use pad sparingly. It's for getting started cleanly, not for papering over recurring reconciliation mistakes.

Week 1 — Separate and Simplify Flows​

With a structure in place, it's time to clarify how money moves through your business.

Keep Business ≠ Personal​

This is the golden rule of small-business finance. Co-mingling funds is a recipe for confusion and tax-time headaches.

• Maintain one dedicated business bank account and one business credit card.
• Mirror this separation in your ledger: Assets:Bank:Business:Checking, Liabilities:CreditCard:Business.
• If you pay yourself, book it as a distribution to Equity:Owner-Draws. Never categorize personal expenses directly from business accounts.

Standardize Vendor Categories​

Do you pay for AWS, Google Cloud, and Vercel? Don't create three separate accounts. Map them all to a single, logical category like Expenses:Cloud. Avoid creating micro-accounts you won't actually analyze. The goal is to see patterns, not to track every single vendor with its own account.

Week 2 — Automate Inputs and Receipts​

Manual data entry is slow, error-prone, and unsustainable. This week is about building a machine to feed your ledger reliably.

Build a No-Drama Import Path​

Beancount's import framework lets you teach it how to read CSV or OFX files from your bank and automatically generate transactions. Invest the time to set this up once, and you'll save hundreds of hours down the line. Keep your importer rules in version control (like Git) so your system is repeatable and backed up.

• Start with Beancount’s official Importing External Data guide.
• For a more interactive workflow, consider a tool like beancount-import, which provides a web UI for semi-automatic matching.
• Many users rely on the built-in ingest or newer beangulp frameworks to build their custom importers. Pick one and stick with it for consistency.

Attach Documents Where They Belong​

A transaction without a receipt is an unsubstantiated claim. Beancount and its web interface, Fava, make it trivial to link source documents to entries, creating an unshakeable audit trail.

You have two great options:

1. Documents Folder + Directive: Store all your receipts and statements in a dedicated folder. Then, link a file to a transaction using the document directive.
2. Drag-and-Drop in Fava: Simply drag a PDF or image file onto a transaction in the Fava UI. Fava automatically stores the file and inserts the correct document directive into your ledger file for you.

; In your main ledger file, tell Fava where your documents live
option "documents" "/home/acme/docs"

; Link a receipt to a specific transaction posting
2025-08-07 * "Figma" "Monthly Subscription"
  Assets:CreditCard:Business    -12.00 USD
  Expenses:SaaS                 12.00 USD
    document: "receipts/figma-2025-08-07.pdf"

Week 3 — See the Truth (Fast Queries You’ll Reuse)​

Your ledger is now clean and fed with data. It's time to ask it important questions. Fire up the bean-query command-line tool to get instant answers.

1) Where’s My Cash?​

Get a quick snapshot of your liquid assets.

bean-query business.beancount 'BALANCES FROM year = 2025 AND (account ~ "Assets:Bank" OR account ~ "Liabilities:CreditCard")'

This gives you an immediate, real-time view of your cash position without logging into multiple bank portals.

2) What Am I Spending On Overhead vs. COGS?​

Understand where your money is really going. Are you spending more on non-essential overhead or on the costs directly tied to delivering your product (Cost of Goods Sold)?

SELECT
  account,
  units(sum(position))
WHERE
  account ~ "^Expenses:(Overhead|COGS)" AND year = 2025
GROUP BY
  account
ORDER BY
  account

This query separates your core operational costs from your administrative burden, a critical insight for profitability.

3) Which Subscriptions Look “Zombie”?​

Find recurring, small-dollar expenses that often fly under the radar. These "zombie" subscriptions can bleed your cash flow dry.

SELECT
  payee,
  COUNT(*) AS num_transactions,
  SUM(number) AS total_spent
WHERE
  account ~ "^Expenses:SaaS" AND date >= '2025-01-01'
GROUP BY
  payee
ORDER BY
  num_transactions DESC,
  total_spent DESC

This query instantly reveals vendors you pay frequently. If you see one you don't recognize or no longer need, it's time to cancel.

Week 4 — Tidy and Lock the System​

The final week is about building the habits and guardrails that keep your finances clean for good.

Put Simple Budgets in Place​

Fava can read budget directives from your ledger and display helpful progress bars in its reports, showing you if you're on track. This provides a gentle, constant reminder of your spending goals.

; Cap SaaS spending at $100 per month
2025-01-01 custom "budget" Expenses:SaaS "monthly" 100.00 USD

Set these for key variable expense categories like software, advertising, or contractors to notice drift before it becomes a problem.

Close the Month, Every Time​

Establish a simple, non-negotiable monthly closing process:

1. Reconcile: For every bank and credit card account, add a balance assertion matching the final number on your monthly statement.
2. Attach: Attach the PDF statement itself to the balance entry using the document directive.
3. Report: Run your three saved queries (cash, overhead/COGS, subscriptions) and paste the outputs into a short monthly review note.

The balance assertion is an automatic tripwire. If your ledger doesn't match the bank statement, Beancount will throw an error, telling you exactly where to look for the discrepancy.

Make Tax Season Boring (In a Good Way)​

By following this system, you transform tax preparation from a crisis into a simple reporting exercise.

• Receipts are attached to transactions, so there’s no frantic search. In Fava, you’re one click away from the source document for any expense.
• Tax-relevant items can be tagged (e.g., #tax-deductible), allowing you to pull a clean report with bean-query for your accountant.
• Year-end balances are locked and verified with balance assertions, giving you and your preparer confidence in the numbers.

A 30-Day Checklist (Print This)​

• Day 1–3
  • Create a minimal chart of accounts.
  • Add pad + balance for each bank/card using the latest statements.
• Day 4–10
  • Set up one importer pipeline and commit your rules to version control.
  • Backfill 90 days of transactions; run a first BALANCES snapshot.
• Day 11–15
  • Standardize vendors to their respective accounts (SaaS, Cloud, Shipping, etc.).
  • Attach statement PDFs for the reconciled periods; confirm they appear in Fava.
• Day 16–20
  • Run the overhead vs. COGS query; fix any miscategorized items.
  • Run the subscription frequency query; cancel or consolidate unused services.
• Day 21–25
  • Add one or two budget caps for key variable expenses via custom "budget".
  • Save your three most important bean-query commands to a script for easy reuse.
• Day 26–30
  • Reconcile all accounts with month-end balance assertions.
  • Write a short "monthly close" note summarizing key numbers and linking to documents.

Common Snippets You’ll Reuse​

A Clean Expense Posting

2025-08-05 * "Figma" "Pro plan"
  Expenses:SaaS               12.00 USD
  Assets:Bank:Checking       -12.00 USD

Balance Assertion from a Statement

2025-09-01 balance Assets:Bank:Checking  8423.17 USD

Budget Guardrail for Rent

2025-01-01 custom "budget" Expenses:Overhead:Rent "monthly" 2500.00 USD

Keep It Simple, Keep It Scripted​

The philosophy of a Beancount-powered financial detox is simple:

• Script what you repeat: Automate imports and reporting.
• Let assertions fail loudly: They are your safety rails, not an inconvenience.
• Prefer fewer, clearer accounts over perfect, granular categorization.

Adopt these habits, and your business will run on tight feedback loops: cash visibility daily, spending drift visible weekly, and a truly boring year-end. That's the clarity and control this detox is designed to deliver.

References & Further Reading​

• Beancount Query Language (beancount)
• Importing External Data with Beancount (beancount)
• Fava Budgets (custom "budget" …) (Fava)
• Documents & document Directive (beancount, Fava)
• Balance and Pad Directives (beancount)

This post is for educational purposes only and is not tax or legal advice.

Picking the “best” business bank account is a lot like picking a software framework: the right answer depends entirely on the job, your specific constraints, and what you’ll need six months from now. There is no single winner. Instead of a ranked list, what you really need is a guide that matches your business model to the right banking tool.

Below is a practical, up-to-date guide to choosing the right account for your LLC. We'll explore eight strong options grouped by use case, not by hype. Where relevant, I’ll note the key fees, APY, and operational quirks you’ll actually feel in your day-to-day work.

Heads‑up on fintechs vs. banks: Several popular options below are financial-technology platforms that work with FDIC-insured partner banks; they aren’t themselves banks. This is a crucial distinction. Always read the fine print on how your funds are covered, especially regarding deposit sweep programs designed to extend insurance.

What to Look For (The Fast Checklist)​

Before diving into specific names, know what to look for. These five factors will guide 90% of your decision.

• Monthly Cost & Waivers: The most obvious factor. A '$15' monthly fee might not sound like much, but it adds up. Look for accounts with a '$0' monthly fee or clear, achievable ways to waive it, such as maintaining a minimum balance or meeting transaction activity goals. Pay close attention to caps on free transactions or cash deposits, as exceeding them can trigger surprise charges.
• Cash vs. Digital Operations: How does money actually move in your business? If you handle physical cash (e.g., retail, food service), convenient and low-cost cash deposits are non-negotiable. If your operations are purely digital, prioritize features like seamless ACH and wire transfers, unlimited virtual cards, and easy-to-create sub-accounts for budgeting.
• APY & Treasury Management: Don't let your operating cash sit idle. Some modern business checking accounts pay a competitive Annual Percentage Yield (APY), turning your checking account into a modest revenue stream. For larger balances, look for accounts offering sweep or treasury options that automatically move excess funds into higher-yield, government-backed securities. Always understand the requirements to earn the advertised rates.
• Features that Scale with You: Your banking needs will evolve. Look for an account that grows with you. Key features include multi-user controls for your team, the ability to issue physical and virtual cards with set spending limits, sub-accounts to implement systems like "Profit First," and direct integrations with your accounting software (like QuickBooks, Xero, or Gusto). A solid mobile app is a must.
• FDIC Insurance Coverage: The standard FDIC insurance limit is '$250,000' per depositor, per bank. As your business grows, your cash balance might exceed this. Many fintech platforms partner with a network of banks to offer extended coverage via sweep networks, spreading your deposits across multiple institutions to insure millions. Confirm the coverage caps and understand the conditions of these programs.

Eight Strong Picks by Use Case​

Bluevine Business Checking — Best for High APY on Checking​

• Why it stands out: Bluevine makes your cash work for you. Its Standard plan has no monthly fees and pays a competitive 1.5% APY on balances as long as you meet simple monthly activity requirements. If you have higher balances and more activity, you can upgrade to their Plus or Premier plans for an APY of up to 3.7%. Another major benefit is its extended FDIC protection of up to '$3' million through a partner sweep network.
• Good to know: While Bluevine is an online-first platform, it accommodates cash deposits through partner locations like Green Dot and Allpoint+ ATMs. Be aware of the fees, which typically include a '$4.95' fee at Green Dot retailers or a variable fee at Allpoint+ ATMs.

Mercury — Best for Venture-Backed Startups & Remote-First Teams​

• Why it stands out: Built for modern, tech-focused companies, Mercury offers a completely online experience from start to finish. It excels with its clean user interface, robust payment tools (ACH, checks, wires), and powerful multi-user controls. Its standout feature for well-funded startups is the Mercury Vault, which provides extended FDIC coverage up to '$5' million by sweeping funds across its partner-bank network (including Choice Financial Group and Column N.A.).
• Good to know: It's important to remember that Mercury is a fintech platform, not a bank. The FDIC insurance is passed through from its partner banks. Mercury is not built for cash-based businesses; it does not accept physical cash deposits, and checks must be deposited via its mobile app.

Relay — Best for “Profit First” and Cash-Flow Clarity​

• Why it stands out: Relay is designed for business owners who want a crystal-clear view of their finances. You can create up to 20 individual checking accounts at no extra cost, making it incredibly easy to implement the "Profit First" methodology or create dedicated accounts for taxes, payroll, and operating expenses. It also allows you to issue up to 50 virtual or physical debit cards. For idle cash, Relay offers savings accounts with a well-advertised APY of up to 3.03% and provides FDIC coverage up to '$3' million via its sweep program with Thread Bank.
• Good to know: Like Mercury, Relay is a fintech whose banking services are provided by Thread Bank (Member FDIC). Be sure to review the sweep program details to understand how the pass-through FDIC insurance works.

Axos Basic Business Checking — Best No-Fee Online Bank​

• Why it stands out: If you want the security and structure of a direct bank without the fees, Axos is a top contender. Its Basic Business Checking account has no monthly maintenance fees, unlimited transactions, and unlimited domestic ATM fee reimbursements. It also includes free domestic incoming wires, making it a powerful and truly free option for many LLCs. As a chartered bank, Axos also offers optional expanded FDIC coverage through the IntraFi network.
• Good to know: Axos frequently runs new-customer promotions and offers. It's always a good idea to confirm the current terms and bonuses directly on their site before you sign up.

Chase Business Complete Banking — Best for Branch Access + Built-in Card Acceptance​

• Why it stands out: For businesses that need a physical presence, Chase's nationwide network of branches and ATMs is hard to beat. The Business Complete Banking account integrates QuickAccept, allowing you to take credit card payments directly through the Chase Mobile app. The '$15' monthly fee is straightforward to waive through several methods, including maintaining a minimum balance or meeting purchase requirements.
• Good to know: Chase has a tiered system of business accounts. The fee schedules, transaction allowances, and free cash deposit limits vary significantly between tiers. Always download and review the latest fee schedule PDF before committing to ensure the account matches your transaction volume.

U.S. Bank Silver Business Checking — Best for Low Volume + '$0' Monthly Fee​

• Why it stands out: If you want a traditional, big-name bank but don't want to worry about monthly fees, the U.S. Bank Silver Business Checking account is an excellent choice. It charges '$0' in monthly maintenance fees and provides 125 free transactions and 25 free cash-deposit units per statement cycle. It’s a solid, no-frills option for new or low-volume businesses.
• Good to know: As your business scales, you can easily upgrade to U.S. Bank's Gold or Platinum tiers, which offer higher transaction allowances and more advanced features. Keep an eye on the fee schedules for these higher tiers.

Bank of America Business Advantage — Best for Integrated Services & Large Network​

• Why it stands out: Bank of America offers another vast branch network and excels at rewarding customers for deeper relationships. Its Business Advantage accounts (Fundamentals and Relationship) offer multiple ways to avoid the monthly fee, including maintaining a minimum balance, hitting a monthly debit card spending target, or qualifying for their Preferred Rewards for Business program.
• Good to know: The specific rules for waiving fees can be complex. Before opening an account, check the current "fees at a glance" PDF on their website to confirm the exact waiver requirements for the plan you're considering.

Novo — Best for Simple, Fee-Light Digital Banking with Built-in Tools​

• Why it stands out: Novo is a fintech platform focused on simplicity and utility for freelancers and small business owners. It has no monthly fees or minimum balance requirements and reimburses all ATM fees (up to a monthly cap). Its standout features are the built-in tools, including "Reserves" for budgeting (similar to sub-accounts), free invoicing, and integrations with popular business tools. All deposits are FDIC-insured via its partner bank, Middlesex Federal Savings.
• Good to know: Novo is not designed for businesses that handle physical cash. It does not support direct cash deposits, so you'll need to plan for workarounds like using a money order if cash is part of your workflow.

How to Decide in 10 Minutes​

Feeling overwhelmed? Use this quick guide to narrow your choices.

• If you want to earn high interest on your operating cash: Start with Bluevine. If you also need advanced budgeting with multiple accounts, check Relay.
• If you’re a startup optimizing for speed and digital controls (and don't handle cash): Look at Mercury or Relay. Just be sure to verify your industry is eligible on their platforms.
• If you take cash or need in-person services: Your best bets are Chase, U.S. Bank, or Bank of America. Compare their fee waiver rules and, most importantly, their limits on free cash deposits.
• If you just want a reliable "no monthly fee" account from an actual bank: Go with Axos Basic Business Checking. It's a straightforward and powerful workhorse.

Opening an LLC Account: Documents & Compliance Notes​

Opening your account is usually straightforward, but preparation is key.

• Bring the Basics: You will almost certainly need your Employer Identification Number (EIN) from the IRS, your articles of organization, and your company's operating agreement. You will also need your personal government-issued ID and potentially a business license or DBA ("doing business as") registration if applicable. Each bank's checklist can vary slightly, so confirm what you need before you go to a branch or start an online application.
• Know the BOI Landscape: The rules around Beneficial Ownership Information (BOI) reporting have been in flux throughout 2025 due to ongoing litigation and new rulemaking. This regulation requires many LLCs to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). Check FinCEN.gov for the latest status and deadlines before you open or make changes to your business accounts.

A Few Pro Tips​

• Don’t over-optimize for APY at the cost of friction. A high-yield account is useless if it creates operational headaches. If your team needs to make frequent cash deposits or visit a branch for notary services, the convenience of a traditional bank will easily outweigh a percentage point of interest.
• Model your actual fees. Don't just look at the advertised monthly fee. Review your last 90 days of business activity. Count your ACH transfers, wire payments, cash deposits, and card transactions. The account that looks cheapest on paper might not be the cheapest for your specific usage pattern.
• Check the terms of extended FDIC coverage. Sweep programs are a fantastic innovation for protecting large balances, but they aren't magic. They operate with specific partner banks and have conditions. Read the fine print to understand how your money is being managed and protected.
• Evaluate onboarding promotions last. A '$300' sign-up bonus is great, but it's a one-time perk. Don't let a short-term offer lock you into an account that will cost you more in fees or frustration over the long term. The right long-term fit is always more valuable.

Methodology (Short & Honest)​

This list was compiled by prioritizing factors that matter to running a real business: transparent fees and waiver rules, practical options for cash deposits or credible digital alternatives, features that help a business scale (like sub-accounts and user controls), and either a high APY on checking or meaningful extended FDIC coverage. All information was sourced from each provider’s public-facing pages and official U.S. small business resources. Terms change frequently, so always verify final details on the product page you intend to use.

TL;DR​

• APY Chasers: Bluevine
• Startups (Remote-First, No Cash): Mercury or Relay
• In-Person & Cash-Friendly: Chase, U.S. Bank, Bank of America
• No-Fee Workhorse (Bank): Axos
• Simple & Tool-Rich (Fintech): Novo

Ultimately, the best choice is the one that matches your transaction patterns today—and supports your team’s reality six months from now.

Finding the right business loan in 2025 is less about chasing the lowest advertised rate and more about matching how you’ll use the money to the product designed for that use. Below is a founder‑friendly map of the current landscape—what’s cheapest, what’s fastest, and what’s safest—plus concrete next steps and lender criteria you can actually meet.

TL;DR — Pick by Your Situation​

• Lowest overall APR for general use: An SBA 7(a) term loan is your best bet. These are government-guaranteed, with rates capped relative to the prime rate. Expect competitive costs, but be prepared for more paperwork and a longer process.
• Real estate or heavy equipment, long fixed rate: The SBA 504 loan program is designed for this. It offers 10, 20, or 25-year fixed portions pegged to 10-year Treasuries. Recent 2025 debenture rates have hovered in the mid-6% range.
• Flexible working capital you can reuse: A business line of credit (LOC) from a bank or online lender is ideal. For example, Bluevine offers LOCs up to $250k with rates as low as 7.8$10k monthly revenue, 12+ months in business).
• Money this week: An online term loan is the fastest option. OnDeck, for instance, funds quickly with term loans up to $250k and lines of credit up to$200k. Typical minimums are a 625 FICO score, $100k+ in annual revenue, and at least one year in business.
• Newer businesses or smaller amounts: Look into an SBA Microloan (up to $50k with 8$15k through crowdfunding.
• You invoice large customers and wait to get paid: Invoice financing or factoring can unlock cash tied up in receivables. Typical fees start around 2.2% per 30 days, which is cheap if invoices turn quickly but expensive if they don't.
• You operate in a rural area: USDA Business & Industry (B&I) loan guarantees are an underused but powerful tool. In FY2025, these guarantees commonly cover 80% of the loan.
• Last resort only: A merchant cash advance (MCA) offers easy approval but comes at a steep price. Their factor rates (often 1.2–1.5) can translate to eye-watering APRs. Know what you’re signing.

The 2025 Rate Backdrop (What “Cheap” Means Right Now)​

To understand loan costs, it helps to know the current financial environment. The U.S. prime rate is 7.50% as of December 19, 2024, and has remained unchanged through early September 2025. Many bank and SBA loan rates float at prime plus a spread. The SBA keeps its options competitive by capping lender pricing on most 7(a) loans based on size (e.g., base rate + 3.0% for larger loans).

As of mid-2025, average Annual Percentage Rates (APRs) for small business loans look roughly like this: bank term loans are around 7–8%, bank lines of credit are 6.5–8%, online loans have a wide range of 9–75%, and SBA 7(a) loans typically fall between 10.5–15.5%. Remember to treat these as ranges, not promises, as your final rate will depend on your business profile.

Best Loans by Use Case​

1. All-Purpose Working Capital at the Best Rate → SBA 7(a)​

• Why it’s great: The SBA 7(a) loan is a versatile workhorse. It has broad permitted uses, including working capital, refinancing debt, purchasing equipment, and even funding acquisitions. Government rate caps tied to the prime rate keep it affordable. The maximum loan size is **$5M**, with the SBA guaranteeing up to 85$150k and 75% for larger amounts.
• What to expect: Be prepared for a more intensive documentation and underwriting process. While the SBA’s own processing can take 5–10 business days, the total time from your application to receiving funds often takes several weeks due to lender underwriting and closing steps.
• New in 2025: The 7(a) Working Capital Pilot (WCP) now offers monitored lines of credit up to $5M with a maximum maturity of 60 months, all under the same general rate framework. This is a great option if you need revolving capital with SBA protections.

2. Real Estate or Big-Ticket Equipment → SBA 504​

• Why it’s great: The SBA 504 program is specifically designed for major fixed-asset purchases. It offers long, fixed terms of 10, 20, or 25 years on the portion of the loan from a Certified Development Company (CDC), which is pegged to 10-year Treasuries. Recent 2025 debenture rates have been in the mid-6% range. The bank's portion of the loan is typically fixed or variable.
• Caveats: This loan has limited uses and cannot be used for working capital. It also requires the borrower to contribute around 10% in equity (more for startups or special-use buildings).

3. Flexible, Reusable Funding for Recurring Needs → Business Line of Credit​

• Why it’s great: A business line of credit (LOC) allows you to draw cash as you need it and only pay interest on what you use. It's a perfect tool for creating a payroll cushion, managing inventory, or bridging gaps in receivables.
• Bank LOC: These offer the lowest rates if you qualify, with 2025 averages sitting around 6.5–8% APR.
• Online LOC: These are easier and faster to obtain. Bluevine offers up to $250k** with rates as low as **7.8$200k and can fund draws rapidly.
• SBA LOC option: The new 7(a) WCP line of credit is an excellent choice if you want the rate protection of an SBA loan on your revolving credit.

4. Need Funds in 24–72 Hours → Online Term Loan​

• Why it’s great: When speed is the priority, online term loans deliver with streamlined underwriting and fast decisions.
• Example: OnDeck offers term loans from $5k–$250k with repayment terms up to 24 months. Their typical minimums are a 625 FICO score, $100k in annual revenue, and one year in business. Same-day or next-day funding is common after approval.
• Trade-off: You'll pay for the convenience. APRs for online loans can run higher than banks or the SBA, spanning a wide range of 9–75% depending on your business profile and the loan term. Always weigh the need for speed against the higher cost.

5. Smaller Amounts or Thinner Credit Files → SBA Microloan or Kiva​

• SBA Microloan: This program provides loans up to $50k through nonprofit intermediaries. Interest rates are typically 8–13% with terms up to seven years. Borrowers usually need to pledge collateral and provide a personal guarantee. It’s a great option for startups and smaller working capital needs.
• Kiva (U.S.): Kiva facilitates crowdfunded loans from $1k–$15k with 0% interest, no fees, and no collateral. The process involves social underwriting and community support, with approvals taking around 10–15 business days.

6. Cash Locked in Invoices → Invoice Financing/Factoring​

• How it works: This method allows you to get a cash advance against your approved invoices. The fee is typically quoted per 30 days the invoice is outstanding, not as an APR.
• Pricing: Providers like FundThrough offer fees starting around 2.2% per 30 days. It's crucial to calculate the cost based on your actual payment timelines to make an apples-to-apples comparison with other loan types.
• Best for: This is ideal for B2B companies that have reliable customers but deal with slow payment terms (e.g., net-30 or net-45).

7. Rural Operations and Projects → USDA Business & Industry (B&I)​

• Why it’s great: For businesses operating in eligible rural areas, lenders can issue loans backed by the USDA with up to 80% guarantees in FY2025. This powerful risk relief for the lender can translate into better terms for the borrower. Maximum loan sizes can be quite large, often well above typical SBA caps.

8. When You’re Tempted by the “Easy Approval” Route → MCAs (Handle with Care)​

• Heads-up: A merchant cash advance (MCA) is not technically a loan. You receive a lump sum in exchange for a percentage of your future sales. The cost is expressed as a factor rate (commonly 1.2–1.5), which can translate to very high APRs once annualized. Regulators have acted against deceptive practices in this space, so read all disclosures carefully before signing.

2025 Comparison Snapshot​

Lender Criteria You Can Actually Hit​

• OnDeck (fast term loans & LOC): Minimum 625 FICO, $100k+** annual revenue, and **1+ year** in business. They offer up to **$250k for term loans and $200k for lines of credit.
• Bluevine (online LOC): You can get up to $250k** with rates from **7.8$10k+ in monthly revenue, and 12+ months in business. Some state and industry exclusions apply.
• Kiva (0% microloans): Offers $1k–$15k at 0% APR with no collateral required, but there is a social proof and crowdfunding component to the application.

How to Choose in Under 5 Minutes​

• If you can wait and want the best rate: Start with an SBA 7(a) loan for general needs or a 504 loan for real estate and equipment. The rate caps and long terms result in the lowest lifetime cost.
• If speed beats price: Go with an online term loan or an online LOC. You can qualify with less friction and get funded quickly.
• If you’re small/new and need ≤$50k: Try an SBA Microloan or Kiva. These options allow you to work with community lenders and keep costs in check.
• If cash is trapped in invoices: Use invoice financing to smooth out your cash cycles, but keep a close eye on the per-30-day fees.
• If you’re rural: Ask local lenders about USDA B&I guarantees—they are generous in FY2025 and can significantly improve your loan terms.

One-Hour Application Prep Checklist​

Having these documents ready will shave days off the underwriting process:

• ID and ownership info (and be ready for personal guarantees on many products).
• Business financials: The last 6–24 months of bank statements, your year-to-date P&L and balance sheet, and prior-year tax returns.
• AR/AP aging and invoice list if applying for a line of credit or invoice financing.
• Use-of-funds memo: A brief document explaining what you need the money for, why it's important, and how you plan to pay it back.
• For SBA loans: Confirm you meet the agency's size standards and the "credit-elsewhere" test, where lenders must document why conventional credit isn’t available to you on reasonable terms.

Pro Tips to Save Real Money​

• Match product to use. Using the wrong tool for the job gets expensive fast. Use a line of credit or a 7(a) for working capital, and a 504 for real estate. Avoid using a high-cost product like an MCA for long-term needs.
• Compare APR, not just rates. Online lenders may quote “fees” or “monthly rates.” Always convert these to an Annual Percentage Rate (APR) to accurately compare offers from banks and the SBA.
• Build a relationship with one lender. Your credit limits and pricing often improve after 3–6 months of positive payment history, especially with online LOCs that may reassess your account monthly.
• Avoid MCAs when possible. Factor rates like 1.35 can equal triple-digit APRs. Only consider this option if it’s the difference between survival and shutdown, and even then, read the disclosures with extreme care.

What to Do Next (Simple Path)​

• If you want the best rate: Talk to an SBA-active bank and a CDC on the same day to explore 7(a) and 504 loans. Use the SBA’s online directories to find active lenders and CDCs in your area.
• If you need speed: Pre-qualify with a reputable online lender (like OnDeck for term loans/LOCs or Bluevine for LOCs) to see what you're eligible for today. Use that offer to pressure-test terms with other lenders.
• If you’re rural or need less than $50k: Contact a local Community Development Financial Institution (CDFI) or a USDA-experienced bank to ask about B&I loans or microloans.

If you run a small business, the right credit card can be a quiet profit center. It can smooth your cash flow, earn outsized rewards on your real expenses, and bundle in protections you’d otherwise pay for. Below is a practical, category-aware shortlist of 16 excellent business cards for 2025. They are grouped by what they do best, with their key earning structures highlighted. Offers and terms change, so always verify details with the issuer before you apply.

Quick Picks: Who Should Get What​

• For simple, everyday cash back: The Chase Ink Business Unlimited® offers a flat 1.5% cash back on every purchase with a $0 annual fee and a 0% introductory APR on purchases for 12 months.

• For big spenders wanting high cash back without juggling categories: The Chase Ink Business Premier® is a pay-in-full card that earns 2.5% on purchases of $5,000 or more and 2% on everything else, with a $195 annual fee.

• For office, internet, and phone bills: The Chase Ink Business Cash® gives 5% cash back at office supply stores and on internet, cable, and phone services (up to a cap), plus 2% at gas stations and restaurants. It has a $0 annual fee and an introductory APR offer.

• For low-maintenance points on everything: The Blue Business® Plus Credit Card from American Express provides 2X Membership Rewards® points on the first $50,000 in purchases each year (then 1X) for a $0 annual fee.

• For a cash-back twin to the Blue Business Plus: The American Express Blue Business Cash™ Card earns 2% cash back on the first $50,000 spent annually (then 1%), with a $0 annual fee.

• For ad spend, shipping, and travel: The American Express® Business Gold Card automatically gives you 4X points on your top two eligible spending categories each billing cycle, up to $150,000 per year.

• For travel power perks and lounge access: The Business Platinum Card® from American Express is the go-to for premium travel benefits, offering 5X points on flights and prepaid hotels booked through AmexTravel, though it comes with a high annual fee.

• For a no-annual-fee, pick-your-category card: The Bank of America® Business Advantage Customized Cash Rewards card lets you earn 3% in a category of your choice and 2% on dining for a $0 annual fee. The Preferred Rewards for Business program can boost earnings by 25%–75%.

• For restaurants, gas/EV charging, and office supplies: The U.S. Bank Triple Cash Rewards Visa® Business Card earns 3% in these key categories, has a $0 annual fee, includes a $100 annual software subscription credit, and offers a 0% introductory APR window.

• For simple, travel-centric points: The Capital One Spark Miles for Business card earns 2X miles on everything and includes a Global Entry/TSA PreCheck credit. The $95 annual fee is waived for the first year.

• For unlimited 2% cash back: The Capital One Spark Cash Plus is a pay-in-full charge card with unlimited 2% cash back. Its $150 annual fee is refunded if you spend $150,000 annually.

• For loyal American Airlines travelers: The CitiBusiness® / AAdvantage® Platinum Select® Mastercard® offers a first checked bag free and preferred boarding on AA flights. The $99 annual fee is often waived for the first year.

• For warehouse club runs and fuel: The Costco Anywhere Visa® Business Card by Citi gives 4% back at gas stations/EV chargers (up to a cap), 3% on dining and eligible travel, and 2% at Costco. There's no card annual fee with a paid Costco membership.

• For Amazon-first businesses: The Amazon Business Prime American Express Card delivers 5% back at Amazon.com with an eligible Prime membership (or you can choose flexible payment terms), all for a $0 annual fee.

• For general travel points with a rich hotel ecosystem: The Marriott Bonvoy Business® American Express® Card earns 6X points at participating Marriott properties, provides Gold elite status, and includes an annual free-night certificate for a $125 annual fee.

• For ads, shipping, and travel spending: The Chase Ink Business Preferred® is a category workhorse, earning 3X points on shipping, online ads, travel, and internet/cable/phone services on the first $150,000 spent per year.

How to Choose Your Card​

To get more value than you pay in an annual fee, focus on these key areas.

Match rewards to your top expense lines. Look at your ledger. If you spend heavily on office supplies, internet, and phone bills, the Ink Business Cash® is unusually efficient. If your spending is concentrated in a few shifting categories like ads, shipping, or travel, the American Express® Business Gold Card automatically targets your top two categories each cycle without any manual switching.

If you prefer simplicity, go for a flat-rate card. Options like the Ink Business Unlimited® (1.5% cash back) and the Blue Business® Plus (2X points up to $50K) minimize the mental load without sacrificing value.

Fund growth with introductory APR windows. Several cards offer 0% introductory APR on purchases, which can help smooth out inventory or equipment buys if you pay them down on schedule. Look to the Ink Cash, Ink Unlimited, and U.S. Bank Triple Cash for these offers.

If you travel often, decide between perks and earning power. The Business Platinum Card® from American Express layers on lounges and statement credits, while the Capital One Spark Miles for Business keeps it simple with 2X miles everywhere and the option to transfer to airline and hotel partners.

Leverage existing banking relationships. If you already bank with Bank of America, their Preferred Rewards for Business status can boost earnings by 25%–75% on eligible BofA business cards, turning decent earn rates into standout ones.

For large, lumpy purchases, do the math. The Ink Business Premier® pays 2.5% on single transactions of $5,000 or more. If you regularly cut big checks for freight, equipment, or media buys, that math wins fast. Just remember it’s a pay-in-full card.

At-a-Glance Cheat Sheet​

No Annual Fee & Simple​

• Ink Business Unlimited®: 1.5% back on everything; intro APR.
• Blue Business® Plus: 2X points on the first $50K/year.
• Blue Business Cash™: 2% back on the first $50K/year.
• BofA Customized Cash Rewards: 3% in a category of your choice; 2% on dining; relationship boosts available.
• U.S. Bank Triple Cash Rewards Visa® Business: 3% in key business categories; software credit.

Cash-Back Maximizers​

• Ink Business Premier®: 2.5% on ≥$5K purchases; 2% otherwise; pay-in-full; $195 AF.
• Capital One Spark Cash Plus: Unlimited 2% back; AF refunded with $150K annual spend.

Travel-Forward​

• Ink Business Preferred®: 3X on ads, shipping, travel & more (up to $150K).
• Business Gold (Amex): 4X on your top 2 eligible categories (cap applies).
• Business Platinum (Amex): Premium travel perks & lounges; 5X via AmexTravel on flights/prepaid hotels.
• Spark Miles for Business: 2X miles on everything; transfer partners; Global Entry/TSA PreCheck credit.
• CitiBusiness / AAdvantage Platinum Select: AA bag & boarding perks; $99 AF (often waived year one).
• Marriott Bonvoy Business (Amex): Gold status + annual free night; $125 AF.

Category-Specific​

• Costco Anywhere Visa® Business by Citi: 4% gas/EV (to a cap), 3% dining/travel, 2% at Costco; requires Costco membership.
• Amazon Business Prime Amex: Up to 5% back at Amazon.com with eligible Prime (or flexible terms); $0 AF.

Smart Stacking Ideas​

• One-Card Simplicity: The Blue Business® Plus (2X up to $50K) or Ink Unlimited® (1.5% back) covers miscellaneous spending with minimal effort.

• Two-Card Combo: Pair the Ink Business Cash® (for its 5%/2% categories) with the Ink Business Unlimited® (for 1.5% everywhere else). If you prefer not to have two Chase cards, swap in the Blue Business® Plus for the "everywhere" role.

• Travel Optimizer: Use a high-multiplier card like the American Express® Business Gold Card (4X on top categories) or Ink Business Preferred® (3X on its categories) and a flat-rate travel card like the Spark Miles for Business for everything else, then redeem your points for trips.

Fine Print to Respect​

• Intro APR is not free money. Treat 0% periods as structured payment plans and pay off the balance before the introductory window closes. Cards like the Ink Cash, Ink Unlimited, and U.S. Bank Triple Cash all offer these periods.

• Pay-in-full products behave differently. The Ink Business Premier® and Spark Cash Plus are designed to be paid in full monthly. This is great for spenders with predictable cash flow but not for those who need to revolve a balance.

• Co-branded cards have constraints. Airline and hotel cards can be incredible—if you actually use the brand. Otherwise, general-purpose cash-back or transferable-points cards are usually a better first choice.

How This List Was Curated​

This list prioritizes (1) the earning math on common small-business categories, (2) simplicity of ongoing use, (3) cash-flow friendliness (like intro APR offers), and (4) issuer acceptance and ecosystem. All key card attributes were verified against public information as of September 2025.

Picking a business checking account in 2025 isn’t about finding a single “winner.” It’s about matching how you move money—ACH vs. wires, cash deposits, international payouts, multi-user access, interest on idle cash—to what each provider actually does well (and at what cost). Below are six excellent options, each “best” for a specific use case, followed by a quick comparison and a practical buying framework.

At a glance — best by use case​

• Bluevine — best for earning APY on checking and modern payables automation.
• Mercury — best for startups that want builder‑friendly banking and free USD wires.
• Relay — best for multi‑account cash management (up to 20 checking accounts) and cash deposits via Allpoint+.
• Novo — best for Stripe‑centric solo and small teams; fast Stripe payouts with Boost; domestic wires rolling out to eligible accounts.
• Axos Basic Business Checking — best for unlimited ATM reimbursements and free incoming wires.
• Chase Business Complete Banking — best for branch access, built‑in card acceptance, and regular cash deposits.

Quick comparison (key signals to check)​

Rates, fees, and coverage change—always confirm on the provider’s site before you apply. Data points above reflect public pages as of September 3, 2025.

The picks, explained​

Bluevine — online checking that actually pays​

• Why it’s great Bluevine’s tiered plans let you trade a higher monthly plan (waivable) for higher yield: 1.5% APY on Standard (with qualifying activity) up to 2.7% (Plus) and 3.7% (Premier)—with FDIC coverage up to $3M via a sweep network. Daily operations feel modern: unlimited transactions, free standard ACH, and integrated bill pay.
• Costs to watch Outgoing domestic wires are $15**; same‑day ACH is **$10; mailed checks are $1.50**. Cash deposits work at Green Dot retailers (typically **$4.95 per deposit) and Allpoint+ ATMs with stated per‑deposit limits.
• Good fit if you want yield on operating cash without giving up modern payables.

Mercury — startup‑grade banking with free USD wires​

• Why it’s great Mercury keeps fees simple: free ACH, checks, domestic wires, and USD international wires. If you send non‑USD, there’s a 1% FX fee. Deposits are held at partner banks with sweep coverage offering up to $5M in FDIC insurance. In March 2025, Mercury announced it’s transitioning away from Evolve to other partners (such as Choice Financial Group, Column N.A. and Patriot Bank).
• Costs to watch No cash deposits—period. If your business is cash‑heavy, consider Relay or Chase.
• Good fit if you’re a software‑first company wiring vendors globally, want API access, and don’t handle cash.

Relay — cash‑flow control with sub‑accounts and ATM cash deposits​

• Why it’s great Relay is built for envelope‑style budgeting: open up to 20 checking accounts under one entity, issue up to 50 cards, set rules/roles, and keep funds organized. Cash deposits are supported at Allpoint+ ATMs, and funds can be covered by FDIC up to $3M through its partner bank program.
• Costs to watch On the free Starter plan, outgoing domestic wires cost $8** (international via local rails from **$5; $25** via SWIFT). **Relay Pro** adds **same‑day ACH** and **free outgoing wires**. Cash‑deposit limits at ATMs apply (e.g., **$1,000 per deposit, $2,000/day).
• Good fit if you want clean segregation of funds (e.g., Profit First), team controls, and the ability to deposit cash without visiting a branch.

Novo — the Stripe‑friendly account for solos and creators​

• Why it’s great Novo integrates tightly with Stripe; flip on Novo Boost to get Stripe payouts up to two days faster (at no added Novo fee). Novo refunds ATM fees up to $7/month and now supports domestic wires for eligible accounts; international wires are sent via Wise.
• Costs to watch No direct cash deposits. If you take cash, you’ll buy a money order and mobile‑deposit it. Wire availability/fees may depend on eligibility and Wise’s schedule for international transfers.
• Good fit if you’re online‑first (e.g., e‑commerce or services), rely on Stripe, and want simple, low‑friction banking.

Axos Bank — $0/month with unlimited ATM rebates​

• Why it’s great Basic Business Checking has no monthly maintenance fee, unlimited domestic ATM fee reimbursements, free incoming wires (domestic & international), two reimbursed domestic outgoing wires/month, and no minimum opening deposit—rare for a full‑service bank.
• Costs to watch Additional outgoing wires beyond the included reimbursements may incur fees; check Axos’ current schedule before heavy wire usage.
• Good fit if you value a traditional bank’s stability with online convenience and nationwide ATM flexibility.

Chase Business Complete Banking — branch muscle + built‑in payments​

• Why it’s great Chase pairs a massive branch/ATM footprint with built‑in card acceptance via QuickAccept (with same‑day deposits) and multiple ways to **waive the $15** monthly fee (e.g.,$2,000 minimum daily ending balance, eligible deposits from Chase Payment Solutions, or Ink card spend). In‑branch, you get $5,000 of cash deposits per cycle at no extra charge.
• Costs to watch Wire fees are typical of big banks (e.g., $25 outgoing domestic online). If you prefer zero‑fee wires, consider Mercury; if you need cash deposits without branch visits, see Relay.
• Good fit if you accept card payments in person, regularly deposit cash, or want walk‑in service.

How to choose (in 10 minutes)​

• Map your money motion
  • Heavy cash? Favor Chase (branch) or Relay (Allpoint+ cash deposit).
  • Frequent wires? For low cost, Mercury (free USD wires) or Relay Pro (free outgoing wires) stand out.
  • Need yield on checking? Bluevine offers plan‑based APY up to 3.7%.
• Decide on operating style
  • Want envelope budgeting and multi‑entity clarity? Relay (up to 20 accounts) is built for it.
  • Stripe‑heavy revenue? Novo + Boost is tailor‑made.
• Check true cost vs. your transactions
  • Compare outgoing wire fees, same‑day ACH, and cash deposit fees against your monthly volumes. Bluevine and Relay publish clear per‑transaction fees; Mercury keeps most domestic/US‑dollar transfers at $0.
• Confirm coverage & partners
  • If extended FDIC matters, note Bluevine and Relay advertise up to $3M**, **Mercury** up to **$5M, via sweep networks across partner banks.

Methodology (what we prioritized)​

• Fees you’ll actually pay (outgoing wires, same‑day ACH, cash deposit fees) over teaser bonuses.
• Availability and access (cash deposits, branches/ATMs, multi‑user controls).
• Safety (FDIC pass‑through coverage and partner banks).
• Operational leverage (APY on checking, Stripe payout acceleration, multi‑account cash management).

We relied on official product pages, help-center articles, and reputable finance publications; all terms are subject to change—verify current details on the provider’s site before opening.

Want a short, personalized pick?​

Tell me how you bank each month (cash deposits, wires, ACH volume, international needs, average balance), and I’ll match you to the best fit from this list with a 60‑second rationale.

Choosing where your company keeps—and moves—its money affects everything from fees to cash-flow visibility. The right account can save you hundreds in fees, earn you interest on idle cash, and simplify your bookkeeping. The wrong one can be a constant source of friction.

The good news: 2025 gives small businesses a deep bench of choices, from nationwide branch banks to modern banking platforms with powerful software layers. Below are seven standout options, each “best for” a different kind of business. Rates and terms change, so use this as a decision guide and confirm the details before you open an account.

TL;DR — Our Top Picks by Scenario​

• Need branches & easy cash deposits: Chase Business Complete Banking
• Want big-bank tools & rewards: Bank of America Business Advantage
• Maximizing your checking APY: Bluevine Business Checking
• For the software-first startup/VC-backed company: Mercury
• For Profit-First style envelopes & sub-accounts: Relay
• For fee-free, ATM-friendly online banking: Axos Basic Business Checking
• For no monthly fee + steady APY in the AmEx ecosystem: American Express® Business Checking

How We Chose These Accounts​

To find the best options, we focused on the features that matter most to small business owners. We analyzed total cost (including monthly fees and how to waive them), access to cash via branches and ATMs, built-in cash-flow management tools, and the potential to earn a yield on idle cash. We specifically looked at how well each account fits different business models, from cash-heavy retail stores to online SaaS companies.

The Short List: A Closer Look​

<a name="chase"></a>Chase Business Complete Banking — Best for Deposit-Heavy, Branch-First Businesses​

Why it stands out: With a massive network of over 5,000 branches and 15,000 ATMs, Chase provides unparalleled in-person access for businesses that handle frequent cash deposits or require face-to-face support. The account's standard $15 monthly fee is straightforward to waive by meeting requirements like maintaining a $2,000 minimum daily balance. A unique feature is the built-in QuickAccept card reader, which allows for same-day funding on eligible transactions, a major plus for managing daily cash flow.

Keep in mind: Like most traditional banks, Chase has a fee schedule for services like wire transfers and excess cash deposits. Before opening an account, review your typical monthly activity and compare it against their fee structure to avoid surprises.

<a name="bank-of-america"></a>Bank of America Business Advantage — Best for Big-Bank Tools & an Upgrade Path​

Why it stands out: Bank of America offers a tiered system that can grow with your business. The Business Advantage Fundamentals account starts with a promotional $0 monthly fee for the first year (then $16), which can be waived by meeting criteria like a $5,000 combined average monthly balance. As your business grows, you can move to the Relationship tier, which offers more no-fee services (like incoming wires) for higher balances. All tiers include access to a helpful cash-flow dashboard, QuickBooks integration, and a digital debit card you can use immediately.

Keep in mind: The monthly fee can be a drag if you don't consistently meet the waiver criteria. Be realistic about your typical balances and transaction volume to ensure you're in the right tier.

<a name="bluevine"></a>Bluevine Business Checking — Best for High APY on Checking​

Why it stands out: Bluevine challenges the idea that checking accounts don't earn interest. Eligible customers can earn a highly competitive Annual Percentage Yield (APY), with rates around $1.5% - 3.7%~APY depending on the plan and meeting certain activity qualifiers. It’s a powerful way to make your operational cash work for you. The account has no monthly fees and comes with a solid toolkit for payments, including ACH, wires, and invoicing.

Keep in mind: Bluevine is an online platform. While you can deposit cash, it's done through third-party networks like Allpoint+ ATMs and Green Dot retailers, which typically charge a fee (e.g., up to $4.95 per deposit). If your business handles a lot of physical cash, these fees could offset the interest earned.

<a name="mercury"></a>Mercury — Best for Startups that Want a Modern Finance Stack​

Why it stands out: Mercury is built for tech-savvy startups. It's a financial technology company (not a bank) that provides banking services through its FDIC-insured partner banks. It offers a powerful, developer-friendly platform with no monthly fees, granular user controls, and robust payment APIs. For businesses with significant cash on hand, Mercury offers up to $5 million in FDIC insurance eligibility through partner-bank sweep networks and Mercury Treasury, an option to invest idle cash into low-risk money market funds and T-bills, advertising yields up to ~4.26%~APY.

Keep in mind: Mercury Treasury is an investment account, not a bank account, meaning it is SIPC-protected but subject to market risk. Also, as a platform that relies on partner banks, the specifics of international payments and foreign exchange can vary, so read the fine print if you operate globally.

<a name="relay"></a>Relay — Best for "Profit First" Envelopes, Sub-Accounts, and Spend Controls​

Why it stands out: Relay is designed for business owners who want precise control over their finances. Like Mercury, it's a financial technology company with banking services provided by an FDIC-insured partner bank. Its standout feature is the ability to create up to 20 individual checking accounts to manage different budget categories (à la the "Profit First" method) and issue up to 50 virtual or physical debit cards with custom spending limits. It also offers a competitive savings APY on its paid plans, with tiers reaching up to ~3.03%~APY.

Keep in mind: As a software-first platform, handling physical cash is more complex than with a traditional bank. If your business model relies on frequent cash deposits, be sure to confirm that Relay's cash-in workflows fit your needs.

<a name="axos"></a>Axos Basic Business Checking — Best for Fee-Free, ATM-Friendly Online Banking​

Why it stands out: Axos Bank delivers a truly fee-conscious online banking experience. The Basic Business Checking account has no monthly maintenance fees and no transaction limits. Its most compelling feature is unlimited domestic ATM fee reimbursements, which is a rare and valuable perk for an online bank, giving you the freedom to withdraw cash from any ATM nationwide without penalty.

Keep in mind: Axos is a fully digital bank with no physical branches. If you need to deposit large amounts of physical cash or require in-person teller services, you will likely need to pair it with an account at a traditional brick-and-mortar bank.

<a name="american-express"></a>American Express® Business Checking — Best for No Monthly Fee + Stable APY​

Why it stands out: For businesses already in the American Express ecosystem, this checking account is a natural fit. It features no monthly service fees and offers a respectable APY (commonly reported around ~1.30%~APY in 2025) on balances up to $500,000. The account integrates seamlessly with AmEx charge and credit cards, making it easy to manage payments and rewards in one place.

Keep in mind: This is an online-first account. While excellent for digital transactions, businesses that are cash-heavy or need frequent in-person banking services should consider maintaining a relationship with a local branch bank as well.

Quick Chooser: Match the Account to Your Business​

• For retailers, restaurants, and trades with weekly cash deposits: Start with Chase or Bank of America for their extensive branch networks and straightforward fee waiver options.

• For online-first businesses (SaaS/e-commerce), distributed teams, or those with rigorous spending policies: Look at Mercury for its software-centric controls and Treasury yield option, or Relay for its powerful multi-account envelope budgeting.

• For making idle cash work without friction: Consider Bluevine for its high APY on checking balances or Mercury Treasury for sweeping larger sums into investment-grade funds (note the investment risk).

• For frequent ATM users who hate fees: Axos is the clear winner with its unlimited domestic ATM fee reimbursements.

• For businesses with heavy AmEx card usage seeking a simple, steady APY: The American Express Business Checking account is a logical and rewarding choice.

Frequently Asked Questions​

Are Mercury and Relay “banks”?

No. Both are financial technology companies that partner with FDIC-insured banks (like Thread Bank for Relay) to provide banking services. Your deposits are held at these partner banks and may be distributed across a "sweep network" of other banks to provide increased FDIC coverage, often up to several million dollars.

Can I earn interest on a business checking account?

Yes, absolutely. Several modern options now offer competitive yields. For instance, Bluevine advertises rates from ~1.5% to 3.7%~APY on checking for eligible customers, and Relay offers a savings APY up to ~3.03%~APY on certain plans. These rates are variable and can change with the market.

We handle lots of cash. Will an online-only account work?

It can, but it comes with trade-offs. You should expect to pay per-deposit fees or take extra steps. For example, Bluevine uses the Green Dot network for cash deposits, which typically involves a retail service fee. If cash is a core part of your operations, a traditional branch bank like Chase is often simpler and more cost-effective.

The Bottom Line​

There’s no single “best” small-business account—there’s only the best fit for your unique mix of deposits, payments, balances, and team workflow. If you need a simple rule of thumb for 2025:

• Consider a hybrid approach: Pair a branch account (like Chase or Bank of America) for cash and in-person needs with a software-first account (like Mercury or Relay) for superior digital controls and yield.
• Revisit your setup periodically: APYs, fees, and waiver rules change. A quick review once or twice a year can ensure you're still in the best possible account for your business.

Accuracy note: Fees, features, APYs, and availability are accurate as of September 3, 2025, per each provider’s disclosures and product pages. Always confirm current terms directly with the financial institution before opening or switching accounts.

Sources (Selected): Chase, Bank of America, Bluevine, Mercury, Relay, Axos Bank, Business Insider, American Express.

If you want, tell me your location, typical monthly balance, cash vs. card sales ratio, and expected wire/ACH volume. I can tailor this list to a single “best match” for your business.

A Beancount‑first guide to modeling the real cost, testing cash flow, and wiring it into your ledger.

Hiring your first employee is a massive step. It’s a bet on your future, but it’s also a significant financial commitment that goes far beyond the number on an offer letter. Too many founders and small business owners get this wrong by fixating on salary alone, only to be surprised by the true, "fully-loaded" cost.

This guide will walk you through how to model that cost accurately, test whether you can actually afford it, and then wire that model directly into your Beancount ledger to de-risk the decision before you post the job.

The TL;DR​

• Don’t stop at salary. In the U.S., the real cost includes employer payroll taxes (Social Security, Medicare, FUTA/SUTA), benefits, insurance, tools, and recruiting. For private industry, benefits alone average ~30% of total compensation, which suggests a ~1.42× “fully loaded” multiplier on top of wages. This can vary widely by company and location.
• A quick rule-of-thumb to start: Fully Loaded Cost ≈ Salary + Employer Payroll Taxes + Benefits + Insurance + Tools/Software + Recruiting/Ramp.
• Use Beancount to de‑risk the decision. Model a monthly payroll budget in your ledger using Fava's budget feature. You can then run a forecast to check your runway, margins, and the payback period for the role before you commit.

1) What Actually Drives “Fully‑Loaded” Cost?​

Think of an employee's salary as the tip of an iceberg. The visible part is straightforward, but the submerged costs are what can sink your cash flow if you're not prepared. Here’s the breakdown.

• Base Pay (Wages/Salary): This is the easy part—the agreed-upon annual salary or hourly wage. It's the biggest line item, but it's just the starting point.

• Employer Payroll Taxes (U.S.): You don't just pay your employee; you also have to pay taxes on their wages. As the employer, you are responsible for:

  • Social Security (OASDI): You pay 6.2% of an employee's wages up to an annual cap. For 2025, that wage base is $176,100.
  • Medicare (HI): You pay 1.45% of all employee wages, with no income cap.
  • Unemployment Taxes (FUTA & SUTA): Federal Unemployment Tax Act (FUTA) is 6.0% on the first $7,000 of wages. However, most employers receive a credit for paying state unemployment taxes (SUTA), bringing the effective FUTA rate down to 0.6%. SUTA rates vary significantly by state and your company's history.

• Benefits: This is often the second-largest cost. It includes things like health insurance, retirement contributions (e.g., a 401(k) match), and paid leave. Across U.S. private industry, benefits average about 30% of total compensation. For perspective, the average annual premium for employer-sponsored health insurance in 2024 was $8,951 for single coverage and $25,572 for family coverage. While employees contribute, the employer typically covers the lion's share.

• Workers’ Compensation Insurance: This is legally required in nearly every state and covers medical costs and lost wages if an employee is injured on the job. The rates depend on your state, industry, and the employee's role (an office worker is much cheaper to insure than a roofer). Don't budget zero for this.

• Tools & Overhead: Your new hire needs the right equipment to do their job. This includes a laptop, software licenses (SaaS seats), a desk if you have an office, and payroll processing software itself. A typical payroll service for a small business runs around $49–$50 per month as a base fee, plus $6–$10 per employee.

• Recruiting & Ramp-up: Don't forget the one-time costs. This includes fees for job postings, your own time spent interviewing, and most importantly, the ramp-up period. A new hire may take 1–3 months to reach full productivity, during which you're paying their full cost for partial output.

2) A Concrete Example​

Let's make this tangible. Imagine you're hiring a U.S.-based employee at an $80,000 salary. You plan to offer single-coverage health insurance, covering the national average employer share of ~84% of the premium.

Here’s how the annual cost breaks down:

• Employer Payroll Taxes:

  • Social Security (OASDI): $80,000 \times 6.2% = $4,960$
  • Medicare: $80,000 \times 1.45% = $1,160$
  • FUTA (at effective rate): $7,000 \times 0.6% = $42$
  • Total Employer Payroll Taxes: $6,162

• Health Insurance (Your Share):

  • Using the 2024 average premium for single coverage ($8,951) and your 84% contribution: $8,951 \times 0.84 = \text{**\$7,519 per year** (or \~\$627/month)}$.

• Payroll Software & Tools:

  • Payroll Software: ($50 base + $6/employee) × 12 months = ~$672 per year.
  • Tools/Laptop/SaaS (estimated): $2,000 per year.

Let's add it all up:

In this scenario, the fully-loaded cost is $96,353, which is 1.20× the base salary. This is a relatively lean benefits package. If you offered a 401(k) match, more generous paid leave, or family health coverage, you could easily approach the national average multiplier of ~1.42×. For an $80k salary, that would imply a total cost closer to $113,800.

The Takeaway: Your true cost will likely be between 1.20× (lean) and 1.40×+ (richer) of the base salary. Run your own numbers to find out.

3) “Can I Afford It?”—Three Pragmatic Tests​

Now that you have a realistic monthly cost (~$8,029 in our example), how do you know if you can sustain it?

1. Gross-Margin Coverage: Does the role pay for itself? If your business has a 65% gross margin, your new hire needs to generate at least $12,352 in new monthly revenue ($8,029 ÷ 0.65) just to break even. If the role is designed to save costs, it needs to find equivalent, durable expense reductions.

2. Payback & Runway: How long until the hire generates a positive return, and can you survive until then? Aim for a 6–12 month payback period on the role's business case—the shorter, the safer. Crucially, you should have at least 3–6 months of the fully-loaded cost in cash as a buffer after accounting for the ramp-up period.

3. Ramp Reality: A new hire won't be 100% effective on day one. Budget for 1–3 months of onboarding and lower productivity. If your cash cushion can't cover both their salary and the initial productivity dip, you're not ready. Consider starting with a contractor or part-time employee to validate the need first.

A U.S.-Specific Note: If this is your first hire or your first hire in a new state, double-check your compliance requirements. FUTA credit reductions can apply in certain states, and SUTA rates vary wildly. Workers' compensation laws also differ. Getting this wrong can lead to penalties.

4) Make the Model Real in Beancount​

The best way to know if you can afford a hire is to see the impact directly in your books. Here’s how to do it with Beancount.

A. Set a Payroll Budget with Fava​

Before anything else, add the projected monthly costs to your ledger using Fava's custom "budget" directive. This lets you visualize the new expense against your income.

; Budgeting for one employee at ~$96k/year fully-loaded cost
2025-09-01 custom "budget" Expenses:Payroll:Wages              "monthly" 6666.67 USD
2025-09-01 custom "budget" Expenses:Payroll:Taxes:Employer      "monthly"  513.50 USD
2025-09-01 custom "budget" Expenses:Benefits:HealthInsurance   "monthly"  626.57 USD
2025-09-01 custom "budget" Expenses:Tools:PayrollSoftware       "monthly"   55.00 USD

Once added, Fava’s Income Statement and Changes reports will automatically show you how you're tracking against this new, higher expense level.

B. Record an Actual Payroll Run​

When you run payroll, you have two common ways to record it.

• Detailed (with Liabilities): This is the most accurate method. It separates your employer taxes from employee withholdings, treating the latter as liabilities that you hold temporarily before remitting them to the government.

2025-09-30 * "Payroll - Alice (September)" ; Example withholdings for illustration
  Expenses:Payroll:Wages                               6666.67 USD
  ; Employer-side taxes (your direct cost)
  Expenses:Payroll:Taxes:Employer:SocialSecurity        413.33 USD
  Expenses:Payroll:Taxes:Employer:Medicare               96.67 USD
  Expenses:Payroll:Taxes:Employer:FUTA                    3.50 USD
  ; Employee withholdings (held as liabilities)
  Liabilities:Payroll:Withholding:Federal             -1000.00 USD
  Liabilities:Payroll:Withholding:State                -300.00 USD
  Liabilities:Payroll:FICA:Employee:SocialSecurity     -413.33 USD
  Liabilities:Payroll:FICA:Employee:Medicare            -96.67 USD
  ; Cash out to bank (net pay to employee)
  Assets:Bank:Checking                                -4853.54 USD

Later, when your payroll provider withdraws the taxes, you'll record a separate transaction to clear the liabilities (e.g., Liabilities:Payroll:Withholding:Federal -> Assets:Bank:Checking).

• Simplified (Lump-Sum): If your payroll provider debits your account in one combined transaction and you don't need to track the detailed liabilities, this is a simpler approach.

2025-09-30 * "Gusto payroll run - Alice"
  Expenses:Payroll:Wages                   6666.67 USD
  Expenses:Payroll:Taxes:Employer           513.50 USD
  Expenses:Payroll:Fees:Provider             55.00 USD
  Assets:Bank:Checking                    -7235.17 USD

C. Forecast Your Runway​

Structure your chart of accounts with a top-level Expenses:Payroll account. Use tags like employee: "Alice" on transactions to filter reports by person. With your budget in place, you can use Fava to overlay your plan versus actuals each month. If you find yourself consistently over budget, it’s time to rerun your affordability tests.

5) When Hiring Does and Doesn't Make Sense (Quick Checklist)​

It likely makes sense if... ✅​

• You are turning away profitable work or delaying product launches due to a lack of capacity.
• You can clearly define a revenue target or cost-savings goal that the new hire will be responsible for.
• Your cash runway comfortably covers the 1–3 month ramp-up period plus an additional 3–6 months of the fully-loaded cost.

You should probably wait if... 🛑​

• Demand for your work is spiky and unpredictable. Start with a contractor or part-time help to manage the variable workload first.
• You can achieve the same goals by buying a better tool or automating a process for a fraction of the cost.
• You can't tie the role to a measurable business outcome. "I'm feeling busy" is not a business case.

Reference Numbers (U.S., 2025)​

• Social Security Wage Base: $176,100
• Employer Tax Rates: 6.2% for Social Security (on wages up to the base), 1.45% for Medicare (no cap).
• FUTA Tax Rate: 6.0% on the first $7,000 of wages, but typically 0.6% effective after state tax credits.
• Benefits as Share of Compensation: Averages ~29.7% in U.S. private industry, implying a ~1.42× average multiplier on wages.
• Avg. Health Premiums (2024): $8,951 for single coverage / $25,572 for family.
• Workers’ Comp: Required in nearly every state; rules and rates vary.
• Payroll Software Cost: Ballpark $49–$50 base fee + $6–$10 per employee, per month.

A Note on Compliance​

This guide is for modeling financial costs. Actually hiring an employee involves legal and administrative compliance. You'll need to set up federal and state payroll tax accounts, verify employment eligibility (Form I-9), have employees fill out tax forms (W-4), and comply with state-specific new-hire reporting and local tax laws. Always consult official resources from the IRS, SSA, and your state's department of labor.

Final Thought​

Hiring is an investment, and the best investors do their homework. Before you write the job description or post on LinkedIn, put the hire into your Beancount ledger. Model it as a budget and forecast the impact on your cash. If the numbers hold up in your own books, you’re ready to hire with confidence.

Recent Reporting & Context

• Axios: Employer health insurance premiums see big jump
• The Wall Street Journal: What’s Driving Health-Insurance Inflation
• Kiplinger: Social Security Wage Cap and Maximum Benefits

Choosing accounting software shouldn’t eat up your entire week. For most small businesses, the goal is to find a tool that’s easy to set up, handles the basics flawlessly, and doesn’t break the bank. To help you decide, we’ve put together a concise, plain-English rundown of eight options that small and medium-sized businesses (SMBs) actually enjoy using.

Below, we cover what each platform is best at, how much it costs (as of August 20, 2025), and the small gotchas to note before you commit.

How We Picked​

We focused on platforms that respect your time and solve real-world problems. Our selection criteria prioritized four key areas:

• Fast Onboarding: A clean user interface, sensible default settings, and helpful setup flows to get you up and running quickly.
• Core Features: Robust support for the essentials, including invoicing, bank feeds and reconciliation, and basic financial reporting.
• Price Clarity: Transparent, publicly listed prices or official statements, so you know what you’re paying for without a sales call.
• Scalability: The ability to grow with your business, whether that’s from a solo operation to a small team, with accessible add-ons or higher tiers.

1) Beancount.io — Best for developers & teams who want scriptable, auditable books​

What it is: Beancount.io is a modern, plain-text accounting platform that turns simple text-based transactions into comprehensive financial reports and dashboards. It’s a “finance-as-code” approach built for precision, automation, and complete data ownership. Paid tiers include AI-powered insights and highly customizable workflows.

• Why SMBs like it: The combination of plain-text data and version control (like Git) creates an airtight audit trail and makes reviewing financial changes as easy as reviewing code. Its flexible automation capabilities integrate seamlessly into engineering-centric workflows. Best of all, there is zero lock-in; your financial data lives in simple text files that you own, not in a proprietary walled garden.
• Pricing: A generous free tier is available for individuals and open-source projects. Paid plans unlock advanced automations and team features. See the official site for detailed pricing.
• Keep in mind: This platform is the best fit for teams who are comfortable working with files and version control systems like Git, or for businesses that want deep, programmatic control over their financial operations.

2) QuickBooks Online — Best for accountants-everywhere compatibility​

What it is: QuickBooks Online is the industry default and the platform your bookkeeper or CPA most likely already knows. It offers a deep feature set and arguably the most extensive ecosystem of integrations and professional support.

• Why SMBs like it: Its reporting capabilities are comprehensive, higher-tier plans handle inventory management well, and the vast marketplace of third-party app integrations means it can connect to almost any tool you use. Its biggest advantage remains its ubiquity—nearly every accountant is fluent in QuickBooks.
• List price: Plans range from Simple Start at $35/mo**, Essentials at **$65/mo, Plus at $99/mo**, to Advanced at **$235/mo. Intuit frequently runs promotions offering 50% off for the first 3 months. (QuickBooks Pricing)
• Keep in mind: For some users, the feature sprawl can feel heavy and overwhelming. Prices have also trended steadily upward over time, as noted by industry watchers. (Woodard Report on price increases)

3) Xero — Best for clean UI + unlimited users (on every plan)​

What it is: Xero is a popular QuickBooks alternative known for its clean, easy-to-navigate interface, strong bank feed connections, and a broad app marketplace. It’s particularly notable for offering unlimited user seats on every plan.

• Why SMBs like it: Users often praise its thoughtful workflows, which make daily tasks like reconciliation feel intuitive. The platform provides good cash-flow visualizations and is backed by a rich app ecosystem for extending its functionality.
• US price: The Early plan is $20/mo**, Growing is **$47/mo, and Established is $80/mo. Note that Xero has announced price increases for its US plans that will be effective October 1, 2025. (Xero Pricing)
• Keep in mind: The entry-level "Early" plan has caps on the number of invoices and bills you can send or enter. Essential services like payroll and mileage tracking are paid add-ons.

4) FreshBooks — Best for service businesses that live in invoices + time​

What it is: FreshBooks excels at the core needs of service-based businesses: simple and professional invoicing, integrated time tracking, and client management portals, all wrapped in polished web and mobile apps.

• Why SMBs like it: The invoicing experience is delightful and designed to help you get paid faster. It also offers excellent project profitability tracking on its Premium plan, allowing you to see which clients and projects are most valuable.
• List price: Core plans are Lite ($21/mo**), Plus (**$38/mo), and Premium ($65/mo**). Costs can climb with add-ons like Team Members (**$11/user/mo), Advanced Payments ($20/mo**), and Payroll (starting at **$40 + $6/worker/mo). Promotions often display lower introductory prices. (FreshBooks Pricing)
• Keep in mind: Be mindful of the client and user limits on lower tiers, as your costs can rise as your business scales or if you need multiple add-on features.

5) Zoho Books — Best automation value, especially if you already use Zoho​

What it is: Zoho Books is a feature-dense and automation-friendly accounting platform that delivers exceptional value. It integrates deeply with the broader Zoho suite of business apps, making it a powerful choice for existing Zoho users.

• Why SMBs like it: It offers excellent bang-for-your-buck with robust workflow rules that can automate many routine accounting tasks. It also includes strong inventory management options, even on mid-tier plans.
• US price (monthly): A Free plan is available with eligibility limits. Paid plans are Standard ($20**), Professional (**$50), Premium ($70**), Elite (**$150), and Ultimate ($275**). Additional users cost **$3/user/mo. (Zoho Books Pricing)
• Keep in mind: While powerful, some accountants may be less familiar with Zoho Books compared to QuickBooks. Each plan also comes with specific limits on invoice and expense volumes.

6) Wave — Best free starter option with paid “Pro” conveniences​

What it is: Wave is a fantastic starting point for brand-new businesses, freelancers, and solopreneurs who need to get up and running fast without an initial investment.

• Why SMBs like it: You get instant setup with unlimited invoicing and simple bookkeeping for free. The affordable Pro plan adds valuable conveniences like enhanced bank automations and better support.
• Price: The Starter plan is $0**. The **Pro** plan is **$19/mo (or $190/year**). Credit card processing fees are typically **2.9$0.60, with a discount on the first 10 transactions for Pro users. (Wave Pricing)
• Keep in mind: It has fewer advanced features and integrations compared to giants like QuickBooks or Xero. Key features like automated bank imports and premium support are reserved for the Pro plan.

7) ZipBooks — Best lightweight alternative with a true free plan​

What it is: ZipBooks is a clean, friendly, and straightforward accounting tool that’s a great fit for side hustles, consultants, and small teams who want simplicity without a hefty price tag.

• Why SMBs like it: The interface is uncluttered and makes invoicing easy. It offers decent reporting for its class and supports connections to multiple bank accounts even on the free plan.
• Price: The Starter plan is Free, Smarter is $15/mo**, and Sophisticated is **$35/mo. A dedicated plan for accountants is also available. (ZipBooks Pricing)
• Keep in mind: Its main limitation is a smaller ecosystem of third-party integrations when compared to the "big three" (QuickBooks, Xero, FreshBooks).

8) Patriot Accounting — Best budget pick with optional US payroll​

What it is: Patriot offers a simple UI, US-based customer support, and a tightly integrated payroll bundle, making it a strong contender if you need both services without complexity.

• Why SMBs like it: The software is very approachable, with clear, no-nonsense pricing. Core tasks like creating invoices and importing bank transactions are easy to manage.
• Price: Accounting Basic is $20/mo** and Accounting Premium is **$30/mo. Payroll can be added, starting at $17/mo +$4/worker for basic service or $37/mo +$5/worker for full-service payroll. Promotions are common. (Patriot Software Pricing)
• Keep in mind: It lacks the advanced features and extensive integration library you'd find in QuickBooks or Xero, but it capably handles the fundamentals.

Quick “At a Glance” (prices are monthly list unless noted)​

• Beancount.io: Free tier; paid automations available. Best for dev-savvy teams.
• QuickBooks Online: $35–$235. Ubiquitous, feature-rich, widely supported.
• Xero: $20 /$47 / $80 (increases Oct 1, 2025). Clean UI, unlimited users.
• FreshBooks: $21 /$38 / $65. Strong for invoicing & project-based work.
• Zoho Books: Free–$275. Great automation value, especially if you’re already on Zoho.
• Wave: Starter $0; Pro$19/mo or $190/yr. Ideal for brand-new businesses.
• ZipBooks: Free–$35. Simple, friendly, and straightforward.
• Patriot: $20–$30. Great budget option with tightly integrated US payroll.

How to Choose in 10 Minutes​

Stop overthinking and start trying. Here’s a quick decision guide:

• If you want a “set it and forget it” system and you’re technical, start a Beancount.io free workspace. Import a week of transactions, script your recurring rules, and see the power of auditable, text-based books.
• If you work with outside accountants, try QuickBooks Online (the most universal option) or Xero (great for collaborating with its unlimited user policy).
• If you bill for your time and rely on polished, professional invoices, trial FreshBooks.
• If you want the most automation power for the lowest cost, test Zoho Books Standard vs. Premium plans.
• If you’re brand new and highly price-sensitive, start on the Wave or ZipBooks free plan and upgrade when you’re ready.
• If you need simple accounting and payroll under one roof at a budget price, check out Patriot.

Where Beancount.io Fits in Your Stack​

Beancount.io is built for businesses that see their financial records as a critical dataset, not just a compliance task. It provides:

• A developer-friendly ledger that’s precise, transparent, and reviewable in pull requests.
• Powerful automations to categorize, transform, and reconcile financial data at scale.
• AI-assisted insights that help you understand your numbers without surrendering ownership of your books.

Start for free and add advanced workflows only when you’re ready to scale.

Notes & Sources​

Pricing and feature information were verified from the official company websites on August 20, 2025. Prices are subject to change and do not always reflect promotional offers. See the citations linked throughout the article for the most current information: QuickBooks, Xero, FreshBooks, Zoho Books, Wave, ZipBooks, Patriot Software, and Beancount.io.

Whether you’re running a side hustle from your laptop or scaling a fast-growing startup, you have a few reliable paths to keeping clean, accurate books. But which one is right for you? The best solution depends on your budget, your technical comfort, and how much control you want over your financial data.

Here’s a clear-eyed guide to the seven most common accounting options—what they’re good at, where they struggle, and when a modern solution like Beancount.io is the perfect fit.

1) Excel​

This is often the first stop on the accounting journey for its sheer simplicity and universal availability.

• Good for: Builders and DIY founders who love total control and already know their way around a spreadsheet.
• Pros: The barrier to entry is practically zero, and thousands of free templates are available online. Its flexibility allows you to build custom financial models and track unique workflows that off-the-shelf software can't handle.
• Cons: The biggest drawback is the immense manual workload. Every transaction must be entered and reconciled by hand, which is a massive time sink. Worse, it’s dangerously easy to introduce silent formula errors or typos with no guardrails to catch them. Collaboration and maintaining a clear audit trail are clunky without rigorous discipline.
• Best if… you want a quick, no-frills start for a very simple business and you are exceptionally meticulous.

2) Google Sheets​

The cloud-native cousin of Excel, Google Sheets offers the same core functionality with a collaborative twist.

• Good for: Teams that need simple, shared spreadsheets for tracking income and expenses.
• Pros: Built-in cloud backups and dead-simple sharing are the main advantages. You can work from any device with a web browser, making it accessible for teams on the go.
• Cons: It suffers from the same fundamental flaws as Excel: a heavy manual workload and a high risk of user error. You may also run into compatibility quirks with certain templates and add-ons designed for the Microsoft ecosystem.
• Best if… your team already runs on Google Workspace and you’re willing to accept the trade-offs of a manual system.

3) QuickBooks Online​

For decades, QuickBooks has been the default choice for small businesses looking for dedicated accounting software.

• Good for: Small businesses that want a "classic" SMB software experience with a large ecosystem of integrations.
• Pros: Its signature feature is bank feeds, which automatically pull in transactions from your bank and credit card accounts, drastically reducing manual data entry. It provides a wide range of financial reports out of the box and is supported by a massive community of accountants and app developers.
• Cons: While transactions are imported automatically, the system still requires your weekly attention to categorize expenses and reconcile accounts correctly. The interface can have a steep learning curve, and the cost can grow with add-on features. Most importantly, it creates vendor lock-in, making it difficult to export your financial history if you ever decide to leave.
• Notes & Sources: As QuickBooks promotes, automated bank feeds are a core feature, but you’ll still be responsible for the review and categorization needed to keep your books accurate.

4) Xero​

A popular, modern alternative to QuickBooks, Xero offers similar capabilities with a focus on clean design and user experience.

• Good for: Business owners who prefer a more modern UI but need the same core capabilities as QuickBooks Online.
• Pros: Xero also has robust bank feeds and powerful reconciliation tools that make matching transactions straightforward. Its clean design is often praised by users, and a large number of accountants are fluent in the platform.
• Cons: The lower-priced tiers can have feature gaps (like limits on invoices or bills) that push you toward more expensive plans, and add-ons increase the total cost. And just like QBO, it faces the same "you still do the work" reality when it comes to the final categorization and review.
• Notes & Sources: According to Xero, its automated bank feeds connect to thousands of financial institutions worldwide to power its core reconciliation workflows.

5) Accountants (CPAs)​

Certified Public Accountants are highly trained financial experts who provide strategic advice, tax planning, and compliance services.

• Good for: Tax strategy, navigating complex financial situations, handling audits, and getting one-off advisory.
• Pros: A good CPA provides expert guidance on critical decisions like entity structure, tax optimization, and complex accounting treatments. Their oversight significantly reduces your risk on high-stakes financial matters.
• Cons: Hiring a CPA firm for day-to-day bookkeeping is prohibitively expensive for most small businesses. To be effective, they still need you to provide timely, organized financial records.
• What’s the difference from bookkeepers? In short, bookkeepers record and organize historical transactions, while accountants and CPAs interpret, report, and advise based on that data. (Investopedia, Intuit)

6) Traditional Bookkeepers​

A bookkeeper is a professional responsible for the weekly or monthly task of recording and reconciling your financial transactions.

• Good for: Business owners who want a dedicated person handling the weekly grind of bookkeeping.
• Pros: Human oversight greatly reduces common categorization errors that software alone can miss. At the end of each month, they produce a clean set of financial statements for you to review.
• Cons: This option is costlier than DIY software, with monthly retainers often starting in the hundreds of dollars. The turnaround time for reports and answers depends on your bookkeeper's availability and process.
• Reality Check: For many small businesses, the combination of a great bookkeeper for weekly tasks and periodic CPA support for tax and strategy is a durable and effective combo. (Pioneer Accounting Group)

7) Beancount.io (Plain-Text Accounting, Supercharged)​

This modern approach combines the control of spreadsheets with the automation of software and the precision of double-entry accounting.

• Good for: Developers, finance pros, and detail-oriented founders who demand precision, transparency, and automation without black boxes.
• What it is: Beancount.io is a platform built on the open-source Beancount methodology. Your entire financial ledger lives as human-readable plain text, which the platform transforms into real-time analysis, hosted Fava dashboards, and AI-assisted workflows.
• Why teams choose it:
  • Scriptable & Auditable: Version-control your books with Git. Every single change is reviewable in a diff, just like code.
  • Hosted Fava UI: Instantly generate income statements, balance sheets, and interactive charts directly from your text-based ledger. No manual report building.
  • AI Assistance: Speed up transaction categorization and anomaly detection while keeping humans in the loop for final approval.
  • True Portability: Your core data is a simple text file. You can export it anytime. There is zero vendor lock-in.
• Tradeoffs: There is a learning curve if you’ve never used double-entry accounting in a plain-text format. It's best suited for those who value absolute accuracy and control over the illusion of "push-button" convenience.

Prefer pure open source and self-hosting?​

You can always run the Beancount open-source engine on your own machine and use Fava as the web UI. It’s incredibly powerful and free, but you will be responsible for managing the setup, backups, and data integrations yourself. Beancount.io handles all of that for you.

Quick Comparison (At a Glance)​

How to Choose​

• Want maximum control, auditability, and developer-grade workflows? Choose Beancount.io. You get hosted Fava dashboards, AI assistance, and the freedom of plain-text portability.
• Want someone to “just handle it”? Hire a bookkeeper and keep a CPA on call for taxes and strategic questions.
• Comfortable in traditional SMB software ecosystems? QuickBooks or Xero are fine choices—just be sure to budget time each week to review and reconcile your transactions.
• Just testing the waters on a tight budget? Spreadsheets can work for a short time. Treat them as a stepping stone to a real system, not the final destination.

Why Plain-Text Accounting is Having a Moment​

Plain-text accounting (PTA) tools like Beancount are gaining traction because they emphasize reproducibility, version control, and transparency. These are values that resonate deeply with engineers, data scientists, and finance pros. If you believe your company's books should be as clear and reviewable as your code, you’re in the right place. (plaintextaccounting.org)

Ready to see your ledger come alive?​

Spin up a free Beancount.io workspace, import a small sample of last month’s transactions, and open the hosted Fava dashboard. You'll see your income statement and balance sheet appear instantly—then you can refine your categories with AI assistance.

If your business received a Paycheck Protection Program (PPP) loan during the pandemic and you haven't yet applied for forgiveness, you're not alone. As of 2025, approximately 98% of PPP loans have been forgiven, but thousands of businesses still have the opportunity to have their loans fully forgiven. This guide will walk you through everything you need to know about securing PPP loan forgiveness in 2025.

Understanding PPP Loan Forgiveness​

The PPP was designed from the start to be a forgivable loan program. If you used your loan proceeds correctly and meet specific requirements, your entire loan amount—including accrued interest—can be forgiven. This means you won't have to repay it.

The good news? The application process has been significantly streamlined, especially for smaller loans. Even in 2025, you can still apply for forgiveness if you received PPP funding in previous rounds.

Who Qualifies for Forgiveness?​

To qualify for full PPP loan forgiveness, your business must meet these core requirements:

Spending Requirements You must have spent at least 60% of your loan proceeds on payroll costs during your covered period. The remaining 40% can be used for other qualifying expenses. If you spent less than 60% on payroll, you may still receive partial forgiveness, but the amount will be reduced proportionally.

Covered Period Your covered period is either 8 or 24 weeks, starting from the date you received your first loan payment. You had the flexibility to choose your covered period when you applied. Any payroll costs incurred during this window are eligible, regardless of when employees actually receive their paychecks.

Maintaining Employment Levels Generally, you need to maintain your employee headcount and compensation levels. However, safe harbors exist if you can demonstrate that you couldn't rehire employees or find qualified replacements.

Eligible Expenses for Forgiveness​

Your PPP funds can be used for forgiveness on these qualifying expenses:

Payroll Costs (minimum 60%)

• Salary, wages, commissions, and tips
• Employee benefits including health insurance premiums
• Retirement contributions
• State and local payroll taxes

Non-Payroll Costs (up to 40%)

• Business mortgage interest (not principal)
• Business rent or lease payments
• Business utility payments
• Covered operations expenditures
• Covered property damage costs
• Covered supplier costs
• Covered worker protection expenditures

All non-payroll obligations must have been in place before February 15, 2020.

The Application Process: Simplified Options​

The SBA offers three different application forms, and which one you use depends on your loan amount:

Form 3508S (Loans $150,000 or Less)​

This is the simplest option. You won't need to provide extensive documentation upfront or perform complex calculations. Simply certify:

• How much you spent on payroll
• How much you're requesting for forgiveness
• That you followed all program rules

Form 3508EZ (Medium Complexity)​

Use this form if you don't qualify for 3508S but meet certain conditions, such as maintaining employee and compensation levels.

Form 3508 (Full Application)​

Required for loans over $2 million or if you don't qualify for the simplified forms. This requires more detailed calculations and documentation.

Required Documentation​

The documentation you'll need depends on which form you're using:

For All Applications:

• Proof of payroll costs (bank statements, payroll reports, tax filings)
• Documentation of eligible non-payroll expenses (receipts, canceled checks, account statements)

Important: Form 3508S requires the least documentation upfront, though you should still maintain records in case of an audit.

For Loans Over $150,000: You'll need to provide more detailed documentation, including:

• IRS Form 941 or equivalent payroll tax filings
• State quarterly wage reporting forms
• Payment receipts for health insurance and retirement contributions
• Proof of mortgage interest, rent, or utility payments

Using the SBA Direct Forgiveness Portal​

Since March 2024, all borrowers can use the SBA's direct forgiveness portal regardless of loan size. This online system can reduce your application time to just 15 minutes.

Steps to Apply Online:

1. Visit the SBA's direct forgiveness portal
2. Enter your loan information
3. Answer questions about how you used the funds
4. Upload required documentation (if applicable)
5. Review and submit your application

Alternatively, you can still work directly with your lender if you prefer personal assistance.

Important Deadlines and Timelines​

Application Window You can apply for forgiveness anytime up to five years from the date your loan was issued. However, if you don't apply within 10 months after your covered period ends, you'll need to start making loan payments.

Review Process The SBA typically reviews applications within 90 days, though simpler applications using Form 3508S may be processed faster. Once approved, your lender will receive payment directly from the SBA.

Common Mistakes to Avoid​

Don't Double-Dip on Tax Credits You cannot claim the Employee Retention Credit for the same wages you're using for PPP forgiveness. Keep these separate to avoid issues with the IRS.

Maintain Accurate Records Even if your loan amount doesn't require upfront documentation, you must keep records for at least six years. The SBA can audit your loan at any time during this period.

Calculate Your 60/40 Split Carefully Ensure at least 60% of your total forgiveness amount comes from payroll costs. Many businesses make the mistake of calculating this based on total loan amount rather than forgiveness amount.

Don't Forget Indirect Compensation Health insurance premiums, retirement contributions, and state/local payroll taxes count toward your payroll costs. Many businesses overlook these when calculating their eligible expenses.

What Happens If You're Not Fully Forgiven?​

If only a portion of your loan is forgiven, you'll need to repay the remaining balance over the loan term (either 2 or 5 years, depending on when you received your loan). The interest rate is 1%, which is quite favorable compared to most business loans.

Audit Risks and Compliance​

Loans over $2 million face enhanced scrutiny and are subject to mandatory reviews. All borrowers, regardless of loan size, can be audited for up to six years after forgiveness.

The SBA expanded its audit and compliance efforts in 2025, focusing particularly on:

• Larger loans exceeding $2 million
• Businesses flagged for potential misuse of funds
• Inconsistencies in documentation

To protect yourself:

• Maintain meticulous records
• Ensure all certifications on your application are accurate
• Consult with a CPA or financial advisor if you're uncertain about any aspect of your application

Next Steps​

If you haven't applied for PPP loan forgiveness yet, don't wait. The process is more straightforward than ever, especially for loans under $150,000.

Your Action Plan:

1. Gather your documentation (payroll records, expense receipts, bank statements)
2. Calculate how you used your loan proceeds
3. Choose the appropriate form (3508S, 3508EZ, or 3508)
4. Apply through the SBA portal or contact your lender
5. Keep all records for at least six years

Remember, even though the PPP program ended in 2021, you still have time to apply for forgiveness. Taking action now means you can close this chapter of pandemic assistance and move forward without the burden of loan repayment.

Additional Resources​

For the most current information and to access the direct forgiveness portal, visit the SBA's official PPP forgiveness page. If you have questions specific to your situation, consider consulting with:

• Your original PPP lender
• A certified public accountant familiar with PPP requirements
• A small business attorney
• Your local Small Business Development Center

Getting your PPP loan forgiven is one of the most valuable financial moves you can make for your business. With the simplified processes now in place, there's never been a better time to complete your application and secure the forgiveness you're entitled to receive.