Business Bank Accounts
A business bank account helps business owners to keep their company’s money and their own personal finances completely separate. Business bank accounts have many similar features to personal bank accounts, but with additional features to help your business run smoothly.
You will also get access to a debit or credit card, cheque book and online account enabling you to make payments on demand.
Why do I need a business bank account?
A business bank account is a legal requirement for limited companies. However, it’s optional for self-employed workers and sole traders. It effectively allows you to keep all your business payments and expenses separate to your personal accounts. So when it comes to putting together your tax return for HMRC, you have a lot more clarity over various travel, equipment and other expenses and can easily determine what was used for business and what was for personal use. Other benefits include having access to a bank manager who you can contact if you need business advice, help making payments, and access to business loans. Invoicing with details of your business account may also increase the professional appeal of your business.
How to compare business bank accounts with Everything Financial
Everything Financial offers a whole of market comparison so you can compare business accounts from mainstream banks alongside newer, tech companies with banking alternatives.
Comparing bank accounts:
Monthly fees – Business current account charges come in many shapes and sizes. Some accounts have no fee, but most charge an annual or monthly fee. Some providers base their fees on how much you pay in each month or how many transactions you make. However, compare accounts to see if there are any introductory offers available that can sometimes give you free use for around 18 to 24 months. After this period, you will be charged a fee.
Free banking – Some business bank accounts charge additional fees for paying in cheques, making transactions and withdrawing money, among other services. Check you are comfortable with any extra charges.
Other bonuses – Some new accounts include perks such as cashback and vouchers when you sign up.