A business bank account helps business owners to keep their company’s money and their own personal finances completely separate. Business bank accounts have many similar features to personal bank accounts, but with additional features to help your business run more effectively.
You will also get access to a debit or credit card, cheque book and online account where you can make payments upon demand.
Why do I need a business bank account?
A business bank account is a legal requirement for limited companies, and only optional for self-employed workers and sole traders. It effectively allows you to keep all your business payments and expenses separate to your personal life. So when it comes to putting together your tax return for the HMRC, you have a lot more clarity over various travel, equipment and other expenses and can easily determine what was used for business and what was used for personal use. Other benefits include having access to a bank manager who you can contact if you need business advice, help making payments, access to business loans or need to query any payments. It also looks a lot more professional when you are invoicing customers to your business bank account, rather than a personal account.
How to compare business bank accounts with Everything Financial
Everything Financial offers a whole of market comparison so you can compare business accounts from mainstream banks and also new tech companies with banking alternatives.
To compare bank accounts, you can look at:
Monthly fees – Business current account charges come in many shapes and sizes. Some accounts with have no monthly fee at all, others have some fees but come with some great value added features. Compare accounts to see if there are any introductory offers available which can sometimes give you free use for around 18 to 24 months.
Free banking – Some banks charge fees for paying in cheques, making transactions and withdrawing money from your business account. However, when comparing business bank accounts, check if this can be free based on an introductory offer or if you get paid a minimum amount into the account each month e.g £750.
Other bonuses – Some new accounts include perks such as cashback and vouchers when you sign up.