If you’re running a business, you will need a business bank account. You simply can’t survive without one. It’s the focal point of your finances, the point through which money flows in and out of your business.
A business bank account is where you deposit payments, pay suppliers and staff, draw out petty cash and complete all of the other fundamental financial transactions involved in running a business.
If you’re a sole trader, it will keep your personal finances separate from the business accounts and, whatever type of business you run, it will be essential for calculating tax. A business bank account can also give your business credibility and, in some cases, it can open up access to finance, support and advice.
So the question isn’t whether you need a business bank account, but who should provide it? On the surface, it may seem that there isn’t really a lot of choice, with the top four banks holding over 80% of small-business bank accounts in the UK. But the choice is actually wider than many people think. As former building societies start to enter the market and internet banking grows ever more popular, it may be time to reassess your options.
