Choosing a business bank account is an important stage in the business start up process. There are several things to consider.
Here are some suggestions which may help you decide which bank would best suit your needs.
- If you are starting up as a limited company, partnership or any other key business structures it is a legal requirement for you to set up a business account. Sole traders can use their own personal accounts, although for accounting purposes, I would recommend a separate business account; which would be “your name trading as……”.
- You don’t necessarily need to choose a business bank account with the bank you are with as a personal banking customer. You may well feel more comfortable with a bank you already know personally, but they may not offer the best deal for your business needs.
- Make sure you compare several business banking accounts, compare the costs and charges associated with each one.
- With the current climate you should only go for banks that have a strong background, a reputable bank and name you have heard of.
- Bank Charges are a key point to look at. Consider how much it will cost you to have a business bank account. You could find that you have a large number of monthly transactions to process. Find out the specifics, it is important to ensure you know exactly what charges will be levied on your account before signing up. Many major banks provide “free” banking for set periods to new businesses, which could really help your business in its early days.
- Online business banking is an invaluable service, most banks now provide an internet service so you can check the status of your account any time, day or night. Accessing your account online to check receipts or to make payments takes minutes, rather than travelling to your local branch or waiting in telephone queues.
- Try looking for a bank which has a specialised small business banking team. The set-up process should be easier, and dedicated teams will be used to dealing with all types of small business and their specific needs. There is usually a committed team member assigned to you as your account manager.
- If you are a business that may require regular contact with their bankers, you should think about going with a team you feel you can build a good personal relationship with.
© Copyright Burnt Orange Accounting
By Kerry Davies