Originally written by Ben Lobel on Small Business
While it may be tempting to start your new business venture without looking at the need for a bank account dedicated to your business activity, this might not be the smartest of choices.
As your business grows and expands, it’s extremely important to separate your business finances from your personal, day-to-day living.
New start-ups and part-time business owners have a habit of co-mingling their finances with their personal money, and while it may be the easiest, most convenient and cheapest way of operating, it can have its drawbacks – especially further down the line.
Any prospective business owner should treat their business as a business, regardless of whether it’s a part-time venture or not; while setting up a separate business bank account means additional bank fees and expenses, you are also storing up a lot of hassle for yourself in the future.
Many people already in business will vouch that keeping your business spending separate to your personal account ensures better manageability.
And while many business current accounts available charge you for their services, there are others that waiver the charge as long as you pay in more than a certain amount each month.
Make sure that you shop

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Originally written by Ben Lobel on Small Business
While it may be tempting to start your new business venture without looking at the need for a bank account dedicated to your business activity, this might not be the smartest of choices.
As your business grows and expands, it’s extremely important to separate your business finances from your personal, day-to-day living.
New start-ups and part-time business owners have a habit of co-mingling their finances with their personal money, and while it may be the easiest, most convenient and cheapest way of operating, it can have its drawbacks – especially further down the line.
Any prospective business owner should treat their business as a business, regardless of whether it’s a part-time venture or not; while setting up a separate business bank account means additional bank fees and expenses, you are also storing up a lot of hassle for yourself in the future.
Many people already in business will vouch that keeping your business spending separate to your personal account ensures better manageability.
And while many business current accounts available charge you for their services, there are others that waiver the charge as long as you pay in more than a certain amount each month.
Make sure that you shop

Read more...

Originally written by James Trowell on Small Business
Q: Should I use a personal bank account for my small business?
A: The short answer is no – but you’re not alone if you do. We conducted a survey earlier this year and found that 63pc of sole traders are using a personal account to pay for everything. Business, pleasure, household bills and everything else in between.
This might feel like an easy option for the busy, fast-paced life of a small business owner, but it doesn’t serve you or your business very well. One bank statement. One never-ending list of transactions. It’s likely to create a financially unstable solution to managing your money because you’ll never really know where you stand.
It’s a little different if you’re operating as a limited company. While it’s not strictly a legal requirement to have a dedicated business account it’s strongly advised. As your limited company is a separate legal entity, technically its money doesn’t belong to you and so needs to be separated from your own finances.
Here are some reasons why keeping your business and personal finances separate is a good idea:
Save time and money when it comes to your tax return
If you’re self-employed you can claim

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Originally written by Anna Jordan on Small Business
Digital banking platforms, also known as Authorised Payment Institutions (API) or e-money institutions/issuers, generally don’t consider themselves to be banks, but they promise something different to their traditional competitors.
These platforms all offer an alternative to traditional high street accounts, they are quick to set up and operate entirely from your smartphone where you can access all their digital banking services.
According to Finder, one in ten people in the UK have switched to a digital only bank like Monzo, Revolut or Starling for their personal banking. That said, nearly half (47pc) of those who use them keep less than £1,000 in a digital bank. There is hope for these challengers – two-thirds of respondents said they plan to convert fully to a digital bank in the future.
What’s interesting is that rather than holding onto cash, people often use personal mobile banking for secondary functions like spending abroad, transferring cash and budgeting apps.
Even if you’d like to keep the bulk of your cash with one of the traditional banks, having a digital account could see you well in one of these other key business areas.
Take a look at the digital banking platforms below and see

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The post Setting up a business bank account: What small companies should know appeared first on Small Business.

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