Top tip- keep business and personal finances separate by opening a separate business bank account and be meticulous in how you spend money from it.
One of the easiest ways to open a business account is to make an appointment at your local branch and speak to an advisor. Explain that you wish to open a business account and explain your business or your business idea. Your adviser will be able to let you know which the best accounts may be for you, plus he or she may allow you a business overdraft or a commercial credit card to help you get started.
How easy or difficult opening a business bank account is will depend on the company, bank or institution you choose to host your business account. They will have their own procedures, rates, processes and qualifiers. Some are happy to accept startup companies, whereas others will want proof that your business can survive and has prospered over a number of weeks or years.
You need to do your research into the account you are about to take up. The company, bank or institution that offers your account will have very different rules that apply to your bank. Here are a few things you should research when you are comparing different business accounts.
- What are the maintenance fees
- What are their deposit fees?
- Are there withdrawal and deposit limits?
- Will they allow a certain number of transactions for free?
- Is there a minimum balance?
- Do they expect a certain amount of cash flow?
- What do they define as a transaction?
- Is the size of your company applicable to the account they are offering?
- Will the account help or hinder your credit rating?
- How easy is it to link accounts to an accounting package like QuickBooks or Xero
- Can you set up permissions to allow others to use the account?
- Are you able to control how much your staff may do with your account?
- Does the account feature plausible and affordable upgrades?
- Will you be able to earn or apply for credit?
- Are their credit fees as attractive as their banking fees?
For further tips and guidance. All LeeP Accountants on 01733 699033