As a business owner, organising your finances is an essential task but one that can often feel overwhelming. There are countless decisions to be made, and choosing whether or not you should open a business bank account may be high up in your priorities. In this blog, we will break down the various factors to consider before you choose which account and provider is best for your business.
If you’re in the initial stages of organising your finances and are still on the fence about whether you should open a business bank account, here are some ways you could benefit from one:
When opening an account, you should consider what the main purpose of that account will be. Do you need a current account for cheques, deposits and spending? Or would a business savings account be more suitable? Perhaps you need an account specifically for loans, or all of these combined. Keep these in mind when talking to account providers, as they will be able to guide you in the right direction towards the type of account that is the best fit for you and your business.
In order to set up an account, there are several pieces of information and documents you will need about you and your business. Different banking providers require different levels of information, but the list below is industry standard:
Full business address and postcode- This can be a home address if you run your business from home.
Contact details – Landline and mobile numbers and email addresses.
Companies house registration number, if applicable.
Approximate annual turnover
Account number – if setting up a business account with a bank you already have a current account with
About partners and directors:
Keep an eye out for each bank’s unique incentives. Many offer discounts, lower fees, and emergency credit. Think about what incentives you would prioritise most and use this to help you decide the right provider for you. Tide are offering Auderli customers £50 cashback and 1 year of free transfers.
All business accounts incur certain fees that personal accounts do not. These include transaction, AVS fees (address verification system), minimum balance fees and early termination fees. Take a look at these when choosing your bank, think about which fees you would have to pay more often, and go for the bank with the lowest cost in this area.
A good way to determine whether a bank is a good fit is to read reviews and find out the experiences of people in similar businesses to yours. That way you know whether the bank works well with your particular type of business, and how they fare with customer support in the long run.
Since your business account will be used on an almost daily basis, it’s important to consider how convenient each bank will be for you. For example, are there ATMs nearby? Or if they are based online, can you still deposit cash and cheques easily? Are there mobile and app banking options and a reliable customer support system in place? All of these elements are important for increasing the likelihood of you sticking with the bank that you choose, so it’s better to understand these factors before committing to one provider.
So, there you go! Hopefully you now feel a little more prepared to open up a business account and make an educated decision on which type you need and which provider is best for your business. Once you have opened your account, you can keep all of your business documents and finances organised even more through Auderli, the new life management app where you can upload store and share important information in a digital filing system.