Bank on It - Why Having a Business Bank Account is Essential

There are many reasons why a new business owner may give up opening a business bank account and find it difficult to use their own personal account for business transactions. Sometimes they just run out of time, have focused on everything else and have forgotten to open a business bank account, suddenly realizing that it can't be done instantly and choosing to keep using their personal account. Other times it is due to lack of conviction, the fear of business failure leads them to put business finance in black and white. However, most of the time it is based on the mistaken belief that it will save them quite a bit of money if they don't have to fork out for business banking fees.

Failing to pay for a separate business account can often be a false economy, as for the small amount that most business accounts can cost, a business can earn much more than a bank account.

The way you are viewed by clients and other companies you do business with is very valuable; Image is everything in business and having your business transactions move through a personal account rather than a business account smells of little time; Your business is much less likely to be taken seriously, and many customers will be put off by the impression of scarcity it creates.

Trying to do business accounts when using the same account for business and personal finances has the potential for absolute disaster; Even allowing for no major tax mistakes, the slow nature of worrying about separating everything will be very difficult for most new business owners.

Make no mistake, HMRC will be watching you; Of course, there will be times when you will have to contact them, provide information, etc. and other times when they will just be watching. The combination of personal and business bank accounts can make you and your company look a little more closely, as it makes financial transparency more difficult to demonstrate at a glance. If the tax collector wants to see that you are declaring everything you owe, having to scramble through hundreds of domestic transactions to locate the business ones will not do so.

European business bank account can provide your business with more than banking services; many banks will incorporate additional extras like accounting software, insurance offers, and even offer real banking services for free for the first year or more of business. They are also a great source of financial advice for the new business owner.

So, instead of viewing a business bank account as an added burden on your new business, perhaps you could consider it in terms of what it can provide in profit for your business. If a business bank account can help your business profile or simplify your record keeping, it may be worth the effort to set it up, if it can also help the authorities view you favorably and provide you with some guidance and cheap insurance. to boot, well then maybe it will become an essential item to add to your list.