A business bank account provides a simpler and more professional way to run your business.
If you operate your business as a limited company, its important that you set up a business bank account and ensure that all business income and expenses are gone through it.
But if you are operating as a sole trader, there is no requirement to have a business bank account. However, it is best practice to use a separate bank account and it will make your business transactions separate from your personal self. Having business and personal transactions mixed together is very messy and will cost you more money in higher bookkeeping fees.
Advantages of having a business bank account
- Separating your business banking from your personal finances
- Make your bookkeeping simple
- Build up a business credit rating
- Better access to credit
Selecting a business bank account
With so many different offers about for business banking, it is worth shopping around for the best deal for your business.
Some banks will offer a period of fee free banking for new business customers. Things to bear in mind include transaction fees and charges, annual/quarterly maintenance fee, fees on withdrawals and or lodgements, online banking facility etc.