How to Switch Business Bank Accounts Without Disrupting Your Operations

In late 2024, The Harris Poll and Unit teamed up to find out how the average business owner feels about their banking experience. They surveyed hundreds of founders and leaders to learn about their current business banking solutions, what they like the least, and whether they’d consider switching bank accounts. The results were beyond what they expected.

100% of respondents said they have at least one issue with their current bank. Every single one. 84% of respondents would consider getting their financial services from providers other than traditional banks, such as fintechs and neobanks.

One of the most commonly cited problems was working capital financing, as 68% of respondents said they need faster access to funds. 51% would be willing to try a new provider if they were offered more affordable loans, and 49% would switch for instant loan approval. 18% of business owners would rather plunge a toilet than apply for a working capital loan at a traditional bank. Why The Harris Poll and Unit asked about plunging toilets is anyone’s guess.

In any case, millions of American founders and business owners are interested in switching bank accounts as we speak. Moving from one business bank account to another isn’t as easy as switching personal accounts, however. If payroll runs out of your account or you owe a string of payments to some vendors, any delay during the transition can be a big deal.

This is how to switch out your business bank account:

Step 1: Figure out what you actually need first

Before you open anything new, write down the features that matter to you. Are you paying too much in wire transfer fees? Do you need a better mobile app? Would you like a card that offers high cash back? Knowing exactly why you're switching can make it much easier to pick the right replacement.

Step 2: Open the new account before you close the old one

This might be the most important rule of the whole process. It’s best to keep both accounts open at the same time for at least 30 to 60 days. This overlap allows you to move things over gradually without anything bouncing or getting misdirected. Closing the old account first is a common mistake, and it can leave your business in a limbo it shouldn’t stay in.

Step 3: Make a list of every automatic payment and deposit tied to the old account

Go through your last two or three months of bank statements and write down everything that hits your account on a recurring basis. This includes things like:

  • Vendor payments and subscriptions
  • Payroll direct deposit
  • Loan or lease payments
  • Payment processor deposits
  • Insurance premiums
  • Tax payments or estimated quarterlies
  • Utility autopay

You might be surprised by how much money automatically leaves your account every month. Having them all documented will make it a lot easier to set them back up, and it might even give you the opportunity to make some cuts.

Step 4: Update your payment processor first

If you use a processor like Stripe or Square to collect money from customers, update your bank account information there as soon as the new account is open and verified. The earlier you do this, the less delay you’ll have in receiving revenue.

Step 5: Redirect incoming deposits

Notify anyone who sends you money regularly that you’re switching accounts. This includes clients who pay you by ACH, your payroll provider if direct deposits come in, and any business partners. Give them your new routing and account numbers and ask them to update their records. Also, make sure the recipient is a qualified, trusted finance professional; you don’t want to email your banking info to the receptionist.

Step 6: Move your recurring outgoing payments

One by one, log into each vendor or subscription service and update the payment method to your new account. Just work through your list from Step 3. And hey, because you followed Step 2, any services you forget about will still be covered by your previous account.

Step 7: Set up your accounting integration

If you use QuickBooks Online, Xero, or any other accounting software, connect your new bank account and make sure transactions are syncing correctly. It’s important to download a full transaction history from your old account before you close it so you have a clean record for tax purposes and historical reference.

Step 8: Transfer your funds over gradually

You probably won’t want to move all your money at once. Keep enough in the old account to cover any payments that might still be processing. As you confirm that everything has been redirected, move the remaining balance over. Do a final check to make sure nothing unexpected hits the old account in the last week before you plan to close it.

Step 9: Close the old account properly

Once you're confident nothing is routing to the old account, request a formal account closure in writing or in person. After you get written confirmation, shred any old checks and debit cards associated with that account. Keep the closure letter for your records.

Step 10: Update your records everywhere else

Do a quick audit of anywhere your old banking information might be saved. This includes vendor portals, tax accounts with the IRS or your state, business registration documents, and your own internal records. It might take a little bit, but it saves a lot of confusion down the road.

Maybe you’re one of the 84% of small business owners that would consider switching banking providers from a traditional bank to a fintech platform. You might also be part of the 68% that needs faster access to loans. If you’re in that majority, Slash may be the answer you’re looking for.¹

Slash is a modern business banking platform that offers flexible 30, 60, and 90 day working capital loans with no surprise fees or convoluted interest calculations.¹, ⁵ Does your current bank take weeks to process your payout? With Slash, you can get the money you need in less than two business days. Now that you know how to switch business bank accounts, consider making the move to Slash today.

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