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Business Bank Account

If you are serious about your business then it's extremely important to have a business bank account. Many people start off as one man bands, which is fine, but make sure you aren't mixing business monies with personal money. People do this because they think they are being clever, they think they are saving themselves money, but in actual fact they are just going to give themselves a great big headache when you try and work out what's going on in your business.

In theory you could just set-up another personal current account and use that as a business account, but the likelihood is the bank will catch onto this and you will be frowned not a good idea, especially if you want to borrow money from your bank in the future. It's much easier reconciling the figures if you have a dedicated business account as all the monies in your business account should be to do with your business, so matching them up to your paperwork should be straightforward.

Also by having separate personal and business bank accounts means you also get separate paying in books (hopefully you will have lots of money to pay into your account), debit cards, credit cards and check books.

A lot of banks will give enticements for you to join them as they know they are likely to get this money bank in charges, leverage on the money in your account if you have a positive balance or interest on the loans they give to you in the future or at start-up.

Getting a business account can be straightforward. If you don't need a loan to set-up your company you will merely need your business number and any documents that go with it (these will be different for each country).

Of course if you are setting up a new business then the company you are setting up won't have any financials - so a credit check will need to be carried out on you to make sure you are good to go. This is a good reason to go with the same bank for your business as personal as they will be able to look at your current account and see how you have been managing that.

Usually your bank will assign a business manager to your account as well so you can chat with them and very often get some free advice.


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