Last Updated on Feb 28, 2020 by James W
If you’ve recently taken the leap to self employment, congratulations. Setting up your own business can be one of the most stressful things you do in your adult life but also one of the most rewarding – and it comes with a wealth of different decisions you need to make with immediate effect.
One of the first things you will do is to set up a business bank account. This is vital if you have set up a limited company but even as a sole trader, freelancer or partner, a business bank account is highly recommended. To make sure you get the most out of your business bank account, here are a few simple tips to follow:
Do your research.
Most of the mainstream banks offer bank accounts for businesses, but some of these will incur a fee for use. Take a look at the accounts available, especially for start-up enterprises, as you will find that many banks offer deals to make their accounts more attractive (and less expensive). Take a look at those that offer a fee-free period as well as other benefits, which may include Sage software, credit control service and even business advice and courses.
Look beyond your current account provider.
Just because you have been a member of one bank since you were knee high to a grasshopper, it doesn’t mean you’ll get the best deal from your current account provider. Take your time to look around rather than biting at the first attractive hook that comes your way.
Advice for businesses.
The best bank accounts for business come with your own business account manager. This is ideal if you require advice about the options available for you and your money, especially if you’re looking into different financial products and services such as business savings and credit cards. Business advisers will work solely with people like you, so they’ll have a much better idea of how things work in this field.
While your bank may offer free rates initially, you might be surprised at the fees you’ll incur once this time-frame has passed. If you’re coming to the end of your fee-free period make sure you look into this. Banks often charge business account holders per transaction, so if you use your account very frequently to withdraw cash or make payments, you’ll want to find a different supplier.
It is vital that your provider offers internet banking in this day and age, as this enables you to keep a much closer eye on your finances. Check out the different ways you can keep on top of your business’ cash, for example, does your bank have a mobile banking app?
If you have freelancing friends or buddies with their own businesses, ask about their experiences with banking. It might be old school, but a great recommendation can go a long way to helping you make the right decision for your business’ financial future.
This content was contributed by SO Switch, experts in bank account comparison.