Answer:
Except for routine payments such as payroll, and excluding sole proprietorships, allowing signers on a business account to transfer funds to their personal accounts within your bank (or, via ACH, outside your bank) is a practice that would make an accountant cringe, and an IRS agent drool.
Of course, there might be businesses with plenty of controls and records to document such transfers, but I'd guess they are in the minority.
Your bank may decide to continue offering this service, but it should do so with the knowledge that it may someday be dragged into an audit.
First published on BankersOnline.com 9/2/02