Why Have a Business Bank Account?

I was talking to our builder about the benefits of business bank accounts today, which made me think this might make a good topic for a post.

When I started up in business I used a second personal current account as my ‘business account’ for a while. Soon, though, I moved over to a free business bank account with Abbey. I now have a business account with Alliance and Leicester Commercial Bank which is free as long as you pay in £1000 each month AND pays a small amount of interest on credit balances.

Reasons to move to a business bank account:

  • Your personal account’s terms and conditions may actually preclude it being used for business.
  • If you are setting up a limited company or partnership you will have to have a separate business account.
  • You’ll need a business account if you want to take credit cards using a merchant account.
  • Setting up a busines bank account sooner rather than later is a good plan if you might do either of these things in the future.
  • It gives customers a better professional image of your business.
  • It helps you manage your finances. (You can have business current and deposit (savings) accounts so you can separate day to day expenses from money set aside for tax or VAT.)
  • If you choose a branch based account you may get helpful advice from the business banking manager.

I’ll look at choosing a business bank account next week, so let me know if you have any good or bad experiences to share.

More from Family Friendly Working
The Dos and Don’ts of Adding Value to Your Home
Your home is not only a safe haven for you and your...
Read More

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.