Choosing your business bank account is an important step for your business finances, so let’s look at how to get it right.
What is a business bank account?
A business bank account is an account solely for your business income and expenditure. In theory, if you are self-employed and your income is quite straightforward, you could use your personal account for receiving payments; however, your accountant won’t thank you for it. What’s more, if you were to be investigated, it would make the process much simpler if your business accounts were kept separate from your personal transactions.
When do you need a business bank account by law
If you are running a limited company in the UK, you need a business account. If your turnover is hard to keep track of, you need a business account. You don’t need a business account by law if you are a freelancer, contractor, or self-employed, although you may find it easier.
Any person with an annual income over £1,000 is recommended to speak with an accountant to find out how to report their earnings. Evesham accountants such as www.randall-payne.co.uk/services/accountancy/evesham-accountants can help with this and offer advice and guidance on all things related to accounting for individuals and businesses.
Which account is right for you?
Choosing the right bank account will depend on how you use it. Some are better for those making large withdrawals, whilst others are best for those who often pay by cash or cheque. Researching rates and perks is vital to find the best fit for your business model.