When setting up your business, you may have questioned whether a business bank account was something you needed or not. This is something we strongly recommend for many reasons which you can check out in our other blog here.
In short, if you are a Limited Company, you are legally required to have a separate bank account for your expenses as you and the business are both separate legal entities.
But how do you choose a bank account that is best for your business?
- Compare your options! Ideally, you want to compare bank accounts utilising comparison sites and gaining as much insight and knowledge as possible. Look for deals or added perks that certain banks might be offering to start-up companies. From this, you can see what is currently available and decide whether they are worth it!
- Look further than your typical high street banks! You might automatically feel more comfortable going with a well-known brand however, there are several competitor brands breaking into the market that want to attract start-ups and business owners.
- Look at the small print! What charges do you incur during different situations? For example, opening the account was free however, after an initial period, do you get charged? If so, it is important for you to know how much just so you can be prepared. Also, look at your interest rate and make sure you understand if any of this will be taxed or not.
- What services does the bank offer? Nowadays, most banks will offer no-stress online banking which is a huge time saver for small businesses. Being able to link your bank accounts to software such as Xero, Free Agent or Dext will also save you a lot of time and will ensure that your bookkeeping will be a lot tidier and organised.
- Finally, ask for advice if you need it! There is no shame in reaching out and asking a friend, colleague or specialist for advice should you need it. After all, your business is something that you care about and keeping your money safe is extremely important.
Our recommendations for a business bank account would be Starling or Tide. Both of these banks are trusted by thousands of people, including us. However, if you do have any concerns or questions on how to choose the best bank account for you, you can contact us for some FREE advice here.